Fonterra wants to buy 20 percent of China's BeingmateStaff writer ▼ | February 13, 2015
New Zealand dairy giant Fonterra said it had lodged a partial tender offer to buy up to 20 percent of Chinese infant food maker Beingmate.
Possible acquisition The partial tender offer for Beingmate
Fonterra would seek to buy up to 20 percent of Beingmate for 615 million New Zealand dollars ($451.6 million), and the two companies would set up a joint venture to buy Fonterra's Darnum plant in Australia and agree a distribution deal for Fonterra's Anmum brand in China.
Beingmate would own 51 percent of the joint venture in Darnum, which produces infant formula and other nutritional milk powders, and the plant would prioritize supply to the Chinese market.
Fonterra estimated the infant formula market in China was worth about 18 billion New Zealand dollars ($13.22 billion) and was expected to be worth 33 billion New Zealand dollars ($24.23 billion) by 2017.
Fonterra claims to be the largest processor of milk in the world, producing more than 2 million tons of dairy ingredients and related products every year. ■