NZ/CHINA: Inner Mongolia Yili Industrial Group to buy Oceania Dairy Group - report
China's Inner Mongolia Yili Industrial Group has announced a deal to buy New Zealand's Oceania Dairy Group and plans to build an infant formula plant in the country, according to reports.
The deal to build the plant and acquire Oceania Dairy will cost Yili Industrial Group NZD214m (US$174m), according to the China Daily newspaper, which cited a Shanghai Stock Exchange statement. The milk powder plant is set to be operational by June 2014.
Shares in the Chinese group are up by 10% since news of the deal broke.
It is thought Yili intends to export "significant" amounts of milk powder back to China, which is committed via a bilateral trade deal to scrapping tariffs on New Zealand dairy imports by 2020.
New Zealand dairy ingredients and infant formula firm Synlait Milk has outlined plans for its IPO - and how it intends to spend the proceeds from the listing....
- Comment: Nestle reacts to world of 3G and Buffett
- Why it is too early to call Unilever food revival
- France takes big step to uniform FOP labels
- What the analysts say: The verdict on Danone's Q1
- How will Flowers Foods grow in speciality bread?
- Unilever food, refreshment sales rise
- Organic food sales in US up 11% in 2014
- UPDATE: Danone CEO upbeat on 2015 growth
- Nestle sales rise on emerging markets, pricing
- Nestle in "exclusive" Davigel talks with Brakes