Pure conjecture, however Fonterra lost the case to stop further branding of the Bega logo, so maybe their idea is to set up an Australian company in case of further consolidation in the Australian food industry. Maybe to make a bid for another Australian company (Bega).
Once Fonterra demerged part of their Oz business the new company would have no foreign takeover issues and given the smaller size of the new company less anti competition issues as well. Therefore the make up of the demerged Aus business will be interesting to see.
BGA Price at posting:
$5.41 Sentiment: None Disclosure: Held
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