National Foods’ NZDF takeover blocked

AUSTRALIA/NEW ZEALAND – Australian food giant National Foods has had its takeover of New Zealand Dairy Foods (NZDF) blocked.

New Zealand’s Commerce Commission stopped the deal amid fears it would stifle competition in the yogurt and dairy dessert markets. National Foods already markets yogurt and dairy dessert products under the Yoplait brand in New Zealand. NZDF processes and distributes dairy products.

New Zealand co-operative Fonterra was ordered to sell its 50% stake in NZDF. In February, National Foods said that its application to the Commerce Commission to acquire NZDF did not mean it wanted to bid for the company.