May 22, 2006

Australia's AWB concludes deal with New Zealand's Fonterra

Australian wheat exporter AWB Ltd said Monday (May 22) that New Zealand's Fonterra Co-operative Group Ltd and AWB's Landmark rural services unit have formed a 50/50 joint venture in New Zealand and a dairy alliance in Australia.

In a joint statement, Fonterra and Landmark said the joint venture represents a net NZ$35 million to NZ$45 million investment by Landmark, and the venture and alliance support both companies' growth strategies.

Through the New Zealand venture, Fonterra's RD1 stores will introduce new services in finance, insurance and real estate, and an expanded livestock sales service, drawing on Landmark's expertise in these areas.

In Australia, the Dairy Alliance between the two companies will use Fonterra's experience to expand Landmark's products and services to the dairy sector.

The alliance will initially involve 11 Landmark stores in Victoria, which will be co-branded Landmark Fonterra, with plans to gradually increase the number of stores across Australia.