Fonterra cleared to acquire the shares in Kapiti Fine Foods and United Milk
Published23 Feb 2006
The Commerce Commission has cleared Fonterra Co-operative Group Limited to acquire the shares in Kapiti Fine Foods Limited and United Milk Limited from Foodstuffs (Wellington) Co-operative Society Limited.
The Commerce Commission has cleared Fonterra Co-operative Group Limited to acquire the shares in Kapiti Fine Foods Limited and United Milk Limited from Foodstuffs (Wellington) Co-operative Society Limited.
Commission Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets.
The Commission will not be commenting further on the decision at this time. A public version of the written decision will be available on the Commission's website as soon as practicable.
Background
Fonterra is a vertically integrated dairy products manufacturer and marketer, operating in all dairy products markets in New Zealand and numerous other countries. It operates through two main business divisions: Ingredients and Consumer Dairy Products.
Foodstuffs LNI is a co-operative society specialising in grocery distribution in the lower North Island. Foodstuffs operates a part of its business through its wholly owned subsidiaries Kapiti and United Milk. Kapiti manufactures and processes dairy products, particularly specialty cheeses, premium ice cream and town milk, and operates a raw milk processing facility in Palmerston North, from which it supplies Kapiti's Farmgate and Kapiti branded milk, as well as Pam's and Calci-smart milk for Foodstuffs' lower North Island stores.
