Fonterra may be eyeing joint bid for Aussie firm

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New Zealand dairy cooperative Fonterra may link with National Foods and Warrnambool Cheese and Butter in a joint bid for Australia's Dairy Farmers, which is valued at up to A$1 billion ($NZ127 billion), Australian media reported.

In an unsourced report, the Australian Financial Review said Dairy Farmers had consented to allow Fonterra to enter discussions with National Foods, owned by Japan's Kirin Holdings, and Warrnambool, releasing them from a confidentiality clause imposed on bidders.

Dairy Farmers, which is owned by 2,000 Australian farmers and makes Dairy Farmers brand milk, Coon cheese and Ski yoghurt, put itself up for sale in April. Analysts have estimated it could be worth between A$800 million and A$1 billion.

Fonterra had separately sought regulatory clearance to bid, along with Italian dairy group Parmalat, which is eyeing a bid alongside Australian farming cooperative Murray Goulburn.

Other potential suitors include Singapore's Olam International and Canada's Saputo.