São Paulo, the biggest urban economy in Brazil. Fonterra and Nestlé created DPA to manufacture and commercialise dairy products across Latin America. Photo / Getty Images

Fonterra and Nestlé's sale of DPA Brazil faces challenge

Author: NZME,
Publish Date: Wed, 26 Jul 2023, 4:10PM

Brazil’s antitrust watchdog is challenging a bid by Fonterra and Nestlé to sell Dairy Partners Americas Brasil to French dairy company Lactalis, BusinessDesk reports.

Last December, the two dairy giants agreed to sell DPA Brasil for approximately $210 million. The deal was expected to be completed by mid-2023, subject to regulatory authority approvals.

The decision to challenge the operation was published in Brazil’s official gazette this week, according to an English translation of the notice.

Officials from the General Superintendence of the Administrative Council for Economic Defense (Cade) looked at the impact of combining the companies’ activities in the national markets for fermented milk, yoghurt, petit suisse, dairy desserts and requeijão (a Brazilian-style cream cheese).

Cade officials raised competition concerns in the dairy refrigerated markets, particularly in fermented milk, petit suisse, and dairy desserts.

Read the full BusinessDesk story here.