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

 

Danone adds to investment in NZ infant formula

Danone adds to investment in NZ infant formula with proposal to buy up to 49% of Yashili New Zealand

By Jonathan Underhill

June 12 (BusinessDesk) - Danone plans to increase its investment in New Zealand infant formula manufacturing by acquiring up to 49 percent of Yashili New Zealand Dairy Co, the local unit of China Mengniu Dairy, according to a filing in Hong Kong.

Terms of the transaction haven't been finalised, including the price and method of payment, Yashili International said in a statement to the Hong Kong stock exchange. "The consideration, the payment method and the payment schedule shall be determined after arm's length negotiations and mutual agreement between the parties," it said in a statement to the Hong Kong stock exchange.

Danone already trades with Yashili and has an existing ownership interest via the quarter stake in Yashili International it acquired in 2014. Yashili NZ agreed to supply base powder dairy products to Danone in the second half of 2016.

Yashili NZ was established in 2012 and invested $220 million in a dairy plant in Pokeno capable of producing 52,000 tonnes a year of infant formula. Danone's existing operations in New Zealand include its Danone Nutricia infant formula business which posted a 9.5 percent gain in sales last year to $368 million. Its Nutricia Ltd medical nutrition business in New Zealand saw 2017 sales fall 7.5 percent to $103.6 million.

Danone and Yashili have signed a memorandum of understanding to execute the transaction but says that document doesn't amount to a legally binding commitment. The announcement refers back to a company statement from May 23 regarding "a disposal of a non-controlling interest in certain factory assets to a connected person of the company."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Commerce Commission: Vodafone Found Guilty Of Misleading Conduct Over 'FibreX' Service

Vodafone NZ Limited has been found guilty of engaging in conduct that was liable to mislead consumers in relation to its FibreX branded broadband service. In a case brought by the Commerce Commission and heard last year, the Auckland District Court ... More>>


Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>

Tourism Industry Aotearoa: Trans-Tasman Bubble Benefits NZ

More people have entered New Zealand than have left since the opening of the trans-Tasman bubble, says Tourism Industry Aotearoa. Since the first flight from Australia to New Zealand took off from Sydney to Auckland on 19 April, the two-way Tasman travel ... More>>