By PHILIPPA STEVENSON
The Commerce Commission has rejected a potential bidder for dairy-market company NZ Dairy Foods.
The commission yesterday declined Australia's National Foods' application to acquire Dairy Foods, half-owned by Fonterra and half by around 6200 present and former Fonterra farmer shareholders.
Fonterra, which owns the other major player in the domestic
market, Mainland, also owns 18 per cent of National Foods.
In its application, the Australian company told the commission that Fonterra was a "passive" shareholder.
But chairman John Belgrave said the commission was concerned about the threat to competition within the yoghurt and dairy dessert market.
The commission has yet to release its full decision.
National Foods spokesman Ian Greenshields said the company was disappointed by the ruling but had yet to see the full reasoning behind it. It would then decide whether to submit an amended application.
Fonterra is required under its enabling legislation to sells its Dairy Foods shareholding by October to a body which is not an "associated person".
