NZDB buys into Bonlac

The New Zealand Dairy Board (NZDB) is to take up a 25% stake in Bonlac of Australia for an undisclosed sum.
Subject to approval by regulatory authorities and shareholders, the proposed merger will create a company with an annual revenue of around A$550 million (310m Euros).
As part of the restructuring process, NZDB will merge its ingredients division into Bonlac, but consumer brands will be separated into an equally owned joint venture company that will market a range of cheese and butter products on both domestic and international markets.
Over the next five months Bonlac is to shut milk processing plants at Drouin, Camperdown and Toora in Victoria, and at Legerwood, Tasmania. This represents the first of a series of drastic cost cutting measures designed to reduce overheads by a total of 30% and enable the company to increase payments to its 2,700 farmer shareholders, who currently receive the lowest dividends in the country.