Fonterra Co-operative Group Ltd - s.87B undertaking

In November 2004 Fonterra lodged a submission in support of its request for an informal clearance by the ACCC of its takeover offer of National Foods Limited.

The ACCC identified a number of competition concerns associated with the proposal.

Fonterra proffered an undertaking that certain arrangements are entered into with an Approved purchaser.

Those arrangements include:

• the sale of the “Brownes” brand;
• the sale of elements of the distribution system in Western Australia as is required by the Approved Purchaser to service the sale of “Brownes” milk products;
• providing for toll manufacturing or the sale of either the Balcatta or Bentley processing plant in Western Australia;
• using its best endeavours to transfer a private label contract with a Major Supermarket to the Approved Purchaser; and
• using its best endeavours to transfer a number of existing raw milk contracts with Western Australian dairy farmers to the Approved Purchaser.