Fonterra is being floated as a possible buyer for the big Australian farmer-owned co-operative Dairy Farmers if shareholders decide to sell rather than list it.
The Australian Financial Review yesterday claimed Fonterra, Goodman Fielder and Coca-Cola Amatil were "obvious" potential buyers and said Fonterra had previously stated an
interest in Dairy Farmers.
However, a Fonterra spokesman said the company would not comment on "speculation". He was unaware of the co-op having already expressed an interest.
Last year, Fonterra chief executive Andrew Ferrier told the Business Herald the co-op was keen to expand across the Tasman, although none of the dairy sector players it might be interested in were publicly listed.
But he added: "If something is available at the right price and it makes strategic sense we'll do it."
Fonterra already has nearly $1 billion invested in Australia but has admitted returns there have not been satisfactory. Ferrier said last October that Fonterra hoped those returns would lift above the co-op's "minimum threshold" within 12 months.
The speculation over a sale comes as Dairy Farmers has been preparing for an A$1 billion public float. It is reported to be looking at timetables for its initial public offering, due before June next year.
The AFR believed Dairy Farmers' board would weigh up any buy-out offers against the benefits of a float.
