Fonterra Co-operative Group, the world’s largest dairy exporter, completed its purchase of 18.8 percent of equity shares from Chinese infant food maker Beingmate Baby & Child Food Co Ltd on Friday [20 March 2015]. The New Zealand dairy giant said it is going to work on increasing its stake to 20 percent. The purchase at 18 yuan ($2.87) per share would cost Fonterra 3.46 billion yuan [~US$556 million]. Fonterra Chief Executive Theo Spierings said that the completion of the purchase of an 18.8 percent stake in Beingmate is an important milestone for both companies…Full Article: China Daily Mar 2015
- According to the Fonterra’s Chief Executive, the Auckland-based dairy company plans to invest NZ$1.5 billion (US$1.13 billion) in China and boost its production capacity to 1 billion liters by 2020.
- In January 2015, China’s Ministry of Commerce approved Fonterra‘s request to purchase a 20 percent stake in Beingmate.
- In August 2014, Fonterra announced plans to purchase a 20% stake (US$467 million) in Beingmate (based in Hangzhou, Zhejiang Province). Beingmate in return would hold a 51% stake in Fonterra’s Gippslands milk powder factory in Victoria, Australia (near Melbourne).
- As of April 2013, Fonterra managed two milking farms in Hebei province and planned to open an additional three farms shortly thereafter. Fonterra intended to have a Chinese milk production capacity of 1 billion liters per year by 2018.
- Established in 1992 and headquartered in Hangzhou, Zhejiang province, Beingmate produces and distributes infant food including milk substitutes, weaning foods and dietary supplements. The company also supplies toiletries, baby beddings, strollers, textiles and children’s toys.
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