Fonterra may have to wait for another bite at National Foods after a spokesman for the Australian dairy company insisted talks about a potential sale were confined to two parties only - its owner San Miguel and the Japanese brewer Kirin, an affiliated company.
Although National Foods spokesmanRupert Hugh-Jones was reported last week confirming talks between San Miguel "and other parties" about a stake in National Foods, he yesterday insisted only San Miguel and Kirin were involved in those talks.
But he could not confirm a report that other parties would be strictly excluded from the process as Southeast Asia's largest food and drinks group prepares to sell part of its recently acquired dairy and juice assets to finance an expansion into mining, energy and infrastructure.
Discussions might be in their early stages but they are understood to have attracted the attention of a number of other large companies, including the Carlyle private equity group, as well as Goodman Fielder, which is rumoured to have enlisted investment bank UBS to break into the sale process.
Fonterra made a play for National Foods in 2005, but lost to San Miguel, who paid around A$1.9 billion.
In doing so, the Philippines-based conglomerate took on heavy debt, which has forced it to offload such assets as its 65 per cent stake in Coca-Cola Bottlers Philippines. Fonterra recently noted that its Australian strategy was now focused on the consumer and ingredient market, rather than dairy exports, which had suffered amid the country's severe drought.
National Foods boasts a strong brand portfolio which includes the Pura milk brand, Berri juices, King Island Dairy, Farmers Union and the Australian rights to Yoplait yoghurt.
It also has a three-year agreement to supply milk to Woolworths, Australia's biggest grocer.
Kirin is understood to have more than A$2 billion earmarked for a stake of anywhere from 49 to 100 per cent of National Foods.
