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Bega Cheese Drops Fonterra Acquisition Bid

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ACCC application withdrawn after Fonterra agrees to sell to Lactalis

Bega Cheese has withdrawn its application to the Australian Competition and Consumer Commission (ACCC) concerning its proposed acquisition of Fonterra’s consumer and associated businesses. The move comes after Fonterra’s announcement on August 23 that it had reached an agreement to sell the business to Lactalis, a French multinational dairy products corporation. Bega Cheese is an Australian food company manufacturing dairy and associated products. It is known for products such as cheese, milk, and Vegemite.

Bega Group had originally submitted its application to the ACCC on June 16. This application related to the potential acquisition of Fonterra’s consumer and associated businesses. However, with Fonterra now pursuing a sale agreement with Lactalis, Bega has opted to discontinue its pursuit.

The ACCC application withdrawal marks the end of Bega’s attempt to acquire the Fonterra assets. This development concludes a period of uncertainty surrounding the ownership of Fonterra’s consumer-facing operations.

The focus now shifts to Fonterra’s deal with Lactalis, pending regulatory approvals and finalisation of the sale agreement. Details of that agreement have yet to be fully disclosed to the public.

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