Press Release
Fonterra Co-operative Group has confirmed a completed partial tender offer which will allow it to acquire 18.8% of Chinese infant formula manufacturer, Beingmate Baby & Child Food Company Ltd.
The transaction will conclude in the next few days.
According to chief financial officer, Lukas Paravicini, the Group had earlier made provision for the possibility of an offer reaching slightly less than 20%.
"Our goal was to acquire up to 20%. We are extremely satisfied and confident that the partnership can and should proceed on the basis of the 18.8% stake", Paravicini said.
"Over the next few weeks, Fonterra and Beingmate will move ahead with the next phase of our partnership, which 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," he added.
Last August, Fonterra and Beingmate announced that they intended to form a global partnership to help meet China's growing demand for infant formula.
The partnership will create a fully integrated global supply chain from the farm gate direct to China's consumers, using Fonterra's milk pools and manufacturing sites in New Zealand, Australia, and Europe.
It is intended to increase the volume and value of Fonterra's ingredients and branded products exported to China.
