Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra Meets Competition Obligations

Friday 5 April 2002

Fonterra Meets Competition Obligations With Successful Dairy Foods Sale

Fonterra Co-operative Group Ltd Chairman John Roadley announced today that the company has agreed to sell its 50.0004 percent shareholding in New Zealand Dairy Foods Ltd, as it was required to do by the end of September under the Dairy Industry Restructuring Act (2001).

The purchaser is New Zealand businessman Graeme Hart's Rank Group Ltd, which has agreed to pay NZ$1.70 per share for Fonterra's 70 million shares. The purchase will occur under a full takeover offer to be made by Rank Group for all of the shares in New Zealand Dairy Foods at NZ$1.70 per share.

Fonterra Chief Financial Officer Graham Stuart says the sale meets the company's obligations under the Dairy Industry Restructuring Act, is good for New Zealand consumers, provides certainty for Dairy Foods' employees and is the best offer for Fonterra and its shareholders.

"From the time the Merger Agreement was signed to create Fonterra, we were clear that we would need to divest our shareholding in New Zealand Dairy Foods to ensure tough competition in the domestic consumer market, and the Government later put this undertaking into law," Mr Stuart said.

"The $1.70 offer is the best available following an exhaustive sales process that canvassed all potential international buyers. The deal also provides for minority shareholders in New Zealand Dairy Foods - who are mostly Fonterra shareholders - to receive the same takeover offer as Fonterra.

"Fonterra is pleased that the best offer came from a New Zealand buyer and that New Zealand Dairy Foods will remain in New Zealand ownership, while Rank Group's controlling interest in Burns, Philp & Co Ltd also provides New Zealand Dairy Foods with a link to a global food company with operations in over 25 countries.

"The sale brings certainty to Dairy Foods employees after many months of not being sure about the future ownership of their company."

Dairy Foods has approximately 40 percent of the New Zealand dairy market. Its brands include Anchor, Fernleaf, Chesdale, Fresh 'n' Fruity, Royal Tasman and Ornelle.

The sales process was overseen by a steering committee, consisting of Brian Allison (Chairman), John Storey and Peter McClure of Dairy Foods, and Henry van der Heyden, Graham Stuart and Alexander Töldte from Fonterra. The process was managed by ABN AMRO.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news