Another Australian dairy processor, Bega Cheese, has also applied for clearance from ACCC to buy Fonterra businesses, being put on sale as part of a divestment of the co-op's consumer business. Latest media reports from Australia says Bega has formed a consortium with Dutch multinational dairy cooperative FrieslandCampina to bid for Fonterra assets. The third player making a bid is Japanese food company Meiji Holdings.

However, the green light from the ACCC puts Lactalis Australia at the front of the queue.

Lactalis and Fonterra both currently acquire raw milk from dairy farmers in Victoria and Tasmania, as well as processing and supplying a range of dairy products across Australia. The ACCC decision means there are no regulatory hurdles for the acquisition.

<Lactalis is a Rothschild gig