The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Royal DSM N.V. group of the Netherlands and Fonterra Cooperative Group Ltd., in New Zealand.
The joint venture, Tasman B.V., will be headquartered in the Netherlands and will develop, produce, and market fermentation-derived dairy protein.
The Tasman output/end-product is an ingredient that may be sold to e.g., manufacturers of food products (dairy alternatives) and specialised nutrition applications (infant formula, medical nutrition).
DSM is active in the production and sale of nutritional and biomedical ingredients worldwide. Fonterra is active in the production and sale of dairy products worldwide.
The commission concluded that the proposed transaction would raise no competition concerns, given the companies’ limited market positions in the relevant markets.
The transaction was examined under the simplified merger review procedure within the European Union (EU).
Fonterra
Recently, the New Zealand dairy cooperative and processor Fonterra announced that it plans to invest NZ$1 billion (€582 million approximately) by 2030 to reduce its emissions and improve water efficiency.
The business said that its new ‘Sustainable Finance Framework’ will align its funding strategy with its sustainability ambitions and reflects “the evolving preferences of lenders and debt investors in this area”.
The framework outlines how the cooperative intends to issue and manage any sustainable debt, which could include green bonds and sustainability-linked bonds and loans.
Fonterra intends to invest $1 billion by financial year 2030 in reducing carbon emissions and improving water efficiency and treatment at its manufacturing sites.