NZ dairy draws international takeovers

Posted by Nicole Eckersley on 20th July 2010

New Zealand dairy has drawn attention from international buyers, with Singapore-based agribusiness and food ingredients group Olam International making a takeover bid for NZ Farming Systems Uruguay, and China’s Bright Food Group buying a 51% share in Synlait.

Bright Food’s NZ$82 million purchase of the Canterbury-based milk processing company will provide a source for high-quality infant and whole milk powders for Chinese consumers.

Olam has offered NZ$0.55 (A$0.44) a share for the 81.55% of NZ Farming that it does not already own, a bid worth NZ$109.6m. Second-seed shareholder PGG Wrightson, with an 11.5% stake in the company, has already accepted the offer in a ‘lock-up’ agreement.

Both deals are subject to approval by shareholders and the New Zealand Overseas Investment Office.