CHINA – A tender offer by Fonterra for 18.8 per cent of China infant formula manufacturer Beingmate Baby and Child Food Company has been completed.
The New Zealand dairy giant had hoped to acquire up to 20 per cent of the business but is confident of a successful development with 18.8 per cent.
The transaction will probably be closed this week, according to a Fonterra press release.
Last August, Fonterra and Beingmate Baby unveiled plans to strengthen the supply of infant formula to the Chinese market across Australian and European areas.
Plans are now afoot for a joint venture, according to Fonterra’s chief financial officer, Lukas Paravicini.
“Over the next few weeks, Fonterra and Beingmate will now move ahead with the next phase of our partnership,” said Mr Paravcini.
“This includes establishing a joint venture to purchase the Darnum plant in Australia and finalising a distribution agreement making Beingmate Fonterra’s exclusive Anmum distributor in mainland China.”
TheMeatSite News Desk