January 31, 2012

Shanghai Private Group to buy New Zealand dairy farms

The government of New Zealand has officially approved the acquisition of Shanghai Pengxin Group with 16 New Zealand dairy farms, said sources on January 30, 2012.

The 16 dairy farms, located in North Island and covering a land area of about 78,855 hectares, previously was owned by Carfar and now is controlled by Korda Mentha.

Pengxin is a private group integrating real estate development, mining industry, modern agriculture and equity investment, with total assets of over RMB10 billion. Jiao Zhaobo and his brother Jiang Lei hold 99% and 1% of the group.

Pengxin will invest NZD100 million (US$82.32 million) or more in the 16 dairy farms in the next five years and the dairy products produced will be sold to China and elsewhere in Asia. Currently, it registers two trademarks in New Zealand "Nature Pure" and "Pure 100".