Fonterra Misses Buyout Head Start
NEW ZEALAND - Fonterra looks to have missed an opportunity to get a jump on its rivals in the race to buy Australian cooperative Dairy Farmers.
27 November 2007
1 minute read
Industry sources reported that Fonterra and Dairy Farmers had been in exclusive talks about combining the two cooperatives since the middle of last year.
It is understood, however, that these talks have broken down and Dairy Farmers is likely to run a competitive process open to many potential buyers.
A deal would have provided massive synergies for both Fonterra and Dairy Farmers, which is thought to be worth A$800 million (NZ$925 million) to A$1 billion.
The talks are understood to have fallen apart in the period leading up to the issue of Dairy Farmers' financial results on November 1.
A source close to Fonterra blamed the breakdown in talks on strong egos among Dairy Farmers' senior management, some of whom might have been out of a job had a deal eventuated.
Source: Stuff.co.nz
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