January 14, 2015

Fonterra to acquire 20% stake in Beingmate

China's leading infant milk formula manufacturer, Beingmate, announced last week that New Zealand-based Fonterra, the world's largest dairy exporter, has expressed interest to acquire 20% stake in the Chinese company.

The proposed NZ$615 million (US$475.6 million) partnership has been approved by the Antitrust Division and the Foreign Investment Department of the China's Ministry of Commerce.

As part of the agreement, Fonterra will be transferring its Darnum plant in Victoria, Australia, to a joint venture between the two companies. To adhere with Chinese foreign investment regulations, Beingmate will be the majority shareholder in the company with a 51% stake, with Fonterra holding the remaining 49% stake.

Furthermore, Beingmate will also be given exclusive distribution rights to market Fonterra's Anmum infant formula products in China. The former has 80,000 sales terminals in China which will make the Fonterra brand more widely available.