Fonterra makes bid for Murray Goulburn co-op

September 25, 2017

Rene Dedoncker at Stanhope recently.

Fonterra has emerged as one of the companies making an offer to take over dairy co-operative, Murray Goulburn.

Fonterra managing director, Rene Dedoncker has told ABC radio the company is interested in Australia's biggest milk processor.

"The answer is yes we have put forward a proposal," Mr Dedoncker said.

"It's non-binding and indicative and at this point we are going to sit tight and give the MG board the respect they deserve to consider all proposals," he told the ABC.

"In many respects we're not that different," he said.

"When they [the Murray Goulburn board] are ready to talk we will be there and at some point when the boards are aligned there may be news."

Earlier today, Fonterra posted an 11 per cent decline in full-year profit as margins fell across its ingredients and consumer and food service divisions.

The cooperative's profit was $745 million in the 12 months ended July 31 from $834 million a year earlier, the Auckland-based company announced on Monday.

Sales rose to $19.2 billion from $17.2b while cost of sales climbed to about $16b from $13.6b.Rising prices offset a 3 per cent decline in volumes at 22.9b litres of milk equivalent.Normalised earnings before interest and tax dropped 15 per cent to $1.2b, which Fonterra

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