Bega Cheese (ASX:BGA) is eyeing Fonterra's (NZE:FCG) AU$2 billion-plus assets, potentially raising equity to acquire Fonterra Oceania, now rebranded as Mainland Group, according to a Monday report by the Australian.

The company is exploring equity and scrip to finance the deal, potentially offering Fonterra shareholders its shares, backed by its track record in owning branded products and favorable contract terms with Fonterra.

The offering also includes non-core assets in Asia, the Middle East, Africa, and the Americas, per the report.

While BGA holds the first right of refusal on the assets, other potential bidders include New York Stock Exchange-listed KKR, Friesland Campina, Lactalis, Saputo, and Warburg Pincus, with first-round bids for the assets due by the end of March, the report added.

Bega Cheese did not immediately respond to a request for comment by MT Newswires.

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