Bonlac merger on the cards

Bonlac Foods of Australia and United Milk Tasmania (UMT) are negotiating a merger. If the two companies unite the result will be one of the countrys largest producer-owned dairy companies with a string of manufacturing facilities across south eastern Australia.
Sales revenue from the two firms is thought to total A$1.2 billion, gener-ated from 2.3 billion litres of milk processed a year, supplied by 3,400 farms.
If the merger goes ahead, UMT shareholders will be invited to subscribe for shares in Melbourne-based Bonlac, having had their existing shares cancelled. The new shares would entitle the holders to become Bonlac milk suppliers.