National Foods poised for takeover

AUSTRALIA/NEW ZEALAND – One of Australia’s largest food companies, National Foods, has applied to the Commerce Commission for permission to acquire New Zealand Dairy Foods.

However, National Foods quickly issued a statement saying: “This should in no way be interpreted as a firm intention by National Foods to proceed to an offer for New Zealand Dairy Foods.” New Zealand Dairy Foods, which manufactures and distributes chilled dairy products for domestic and home markets, is half owned by the Fonterra co-operative. Fonterra also has the single largest share holding in National Foods.

The Commerce Commission will now assess whether a takeover would meet competition guidelines in New Zealand.