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National Foods rejects Fonterra bid
29 Oct 2004
Milk producer National Foods rejected a $1.62 billion takeover offer by New Zealand dairy giant Fonterra. A co-op owned by more than 12,000 New Zealand farmers, Fonterra is already a $1.4 billion supplier in Australia's dairy market following its acquisition two years ago of WA's biggest milk processor, Peters & Brownes, and a half stake two years ago in Victorian dairy foods processor Bonlac. Any acquisition of National Foods would double its Australian turnover. National Foods buys around eight per cent of Australia's total milk production but has 41 per cent of the national white milk market through its Pura brands and a national contract to supply Woolworths with house brands.
Fonterra offered $5.45 offer for National Foods. But Fonterra said the bid was conditional on National Foods dropping its own bid for fruit cannery SPC Ardmona.
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