Australian dairy products company Bonlac Foods has said its shareholders have approved a proposal for New Zealand diary giant Fonterra to double its stake in Bonlac to 50%.

As a result of the deal, Bonlac said Fonterra will take over the day-to-day management of the company from 9 September, when the proposal is expected to be completed.

Peter Myers is to step down from the position of chief executive officer of Bonlac on 12 September, but will continue as non-executive director of the company for 12 months.

Bonlac said a number of its senior executive positions would also become redundant in the new organisation. All of the company’s corporate staff are to be advised on Tuesday about their future with the company.

Fonterra’s Bruce Donnison was nominated by the New Zealand company as general manager of Bonlac Foods following the shareholder vote.

Bonlac Foods chairman Noel Campbell will continue in the role on the restructured board, which will have equal representation from Bonlac and Fonterra.

Fonterra will not pay any cash for the larger stake, but has agreed to buy all of Bonlac’s production. Bonlac said the deal would cut its costs and improve its earnings before interest and tax by between A$35m and $38m (US$22.5m-$24.5m) a year, reported Reuters.