Merger creates Australasian dairy giant
AUSTRALIA / NEW ZEALAND –, The biggest consumer dairy business in Australasia was created this week with the announcement that Australia’s Bonlac and New Zealand’s Fonterra are to merge their businesses.
The new vehicle, which will be called Australasian Food Holdings, will be 75% owned by Fonterra and 11.4% owned by Bonlac. New Zealand’s Tip Top and Mainland firms and Australia’s Peters & Brownes will hold the remaining 13.6%. It will have annual sales of around €,1.5 billion.
The deal began last year when Bonlac shareholders agreed to allow Fonterra to take a 25% stake in the company. The companies then took an equal share in a new business to market their dairy products.
Fonterra chief executive Craig Norgate said that the move created possible growth options and would not rule out the possibility of the new company being publicly listed. “We are happy with the current shareholding base, but we wouldn’t exclude options in the future that might include public equity,” he said.
Reports this week have also suggested that Fonterra will try to get a stock exchange listing for the new company by a further merger with National foods, which is already listed.
