Mengniu Dairy has made an investment in a fellow Chinese group that owns a prominent business in Australia.
Following the announcement of two acquisitions in Australia in 2019, Mengniu has struck a deal to buy 5% of Shanghai Ground Foods Tech Co., a company also known as Ground Food, that owns Perth-based Brownes Dairy.
Shanghai-listed Ground Food said Mengniu had agreed to pay CNY14 (US$2.02) a share for more than 20m shares.
In a stock-exchange filing, Ground Food said the companies had “agreed to actively carry out the development and promotion of various cheese products, and co-build sales channels”.
Ground Food said having Mengniu, one of China’s largest dairy companies, as an investor would “strengthen” its cheese business.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Shanghai-based Ground Food acquired Brownes in late 2017 from Australian private-equity firm Archer Capital as part of a consortium that also had investment firm Changchun Lianxin Investment Consulting Company as a member.
In November, Mengniu agreed a deal to acquire Australia-based Lion Dairy & Drinks for AUD600m (then US$407.5m), pending approval from Australia’s competition watchdog and the country’s board that oversees foreign investment.
The announcement came a week after Australia’s overseas investment regulator gave the green light to Mengniu’s acquisition of infant-formula maker Bellamy’s Australia.