Visit our site to learn more. New Zealand dairy producer a2 Milk Company (ASX: A2M) surprised the market this morning by unveiling a non-binding indicative offer to acquire a majority stake in Chinese-owned milk manufacturer Mataura Valley Milk for around NZ$270 million. Mataura Valley Milk Plant - Gore - 71% owned by China Animal Husbandry. "A2 Milk already works closely with our sister company China State Farm and is well respected in the China market.". The acquisition needs approval from the Overseas Investment Office, but it … A2 Milk looks to boost Chinese connections with $250m acquisition. We are one of New Zealand's largest food production and supply groups. A2 Milk is paying for the stake from cash reserves. China Animal Husbandry Group, a state-owned-enterprise, now owns 82 per cent of Mataura Valley Milk. Chief executive Geoff Babidge said the deal with Mataura and CAHG would be key to establishing a strong base of operations in New Zealand, along with forging a deeper bond with A2’s Chinese partners. Ann: Terms agreed - Mataura Valley Milk transaction, page-2 . As a milk marketing company (a2 owns shares in Synlait) and is now potentially buying into Mataura Valley Milk)). Currently the major shareholder in Mataura Valley Milk is China Animal Husbandry Group (CAHG), which owns 78.6 percent. The A2 milk company has announced it has signed agreements to buy 75 per cent of a South Island New Zealand milk powder producer at a cost of NZD $268 million. Mataura Valley Milk has acquired 26.2 hectares of land at McNab and has obtained the necessary consents to build and operate a dairy plant. ATM has made a non-binding offer of about $270 million for a 75.1 percent stake in Mataura, and has been given exclusive right to conduct due diligence. Earlier this month the company posted a record profit of $385.8 million. future-proof electricity supply for the new Mataura Valley Milk dairy nutrition plant at McNab near Gore. Improving Workplace and Public Safety in Invercargill A three-year, $9.2 million project to significantly improve workplace and public safety in Invercargill is close to completion. BODCO - Hamilton - 40% owned by China Animal Husbandry. "MVM provides a unique opportunity to acquire a new world class nutritional products manufacturing capability in New Zealand, alongside a highly respected China state-owned enterprise in China Animal Husbandry Group," he said. The deal had been foreshadowed by A2 which confirmed it had begun discussions in August. Allied Faxi - Kerepehi - owned by Allied Faxi Food Co. Silver Fern Farms (NZ's largest meat processor and exporter) - 50% owned by Shanghai Maling. A2 Milk has acquired a majority stake in New Zealand company Mataura. First ... Obviously a2m is being held hostage here considering CAHG owns the distribution company that deals with a2m in … "We have worked closely with CAHG and MVM over recent months and have developed relationships with both teams that we are confident will provide a strong foundation for the business going forward.". Talley’s Group is a multi-division, international company. It has annual revenues of $1.6 billion and more than 10,000 employees, and wholly or partially holds 10 … New Zealand-based a2 Milk Company (a2MC) has initiated negotiations to acquire a 75.1% stake in Mataura Valley Milk (MVM), a dairy nutrition business, for … Geoff Babidge, CEO of The a2 Milk Company.Credit:Rhett Wyman. Credit:Louise Kennerley. In the interim, Mataura will continue to manufacture its current nutrition and milk powders, during which the business will operate at earnings break-even, with plans to become profitable by the 2025 financial year. "CAHG welcomes the A2 Milk Company as a strategic partner as both companies share the same vision of creating large scale world-class nutritional manufacturing at MVM," Mataura chairman Tingwu Xue said. A2 Milk is paying for the stake from cash reserves. 0.98% $10.11 the a2 milk company limited. Clutha-Southland MP Hamish Walker said MVM had been working hard to earn the respect and trust of Southlanders. "Our intention would be to invest further to establish blending and canning capacity at Mataura's facility to support the establishment of a fully integrated manufacturing plant for infant nutrition.". Specialty dairy company A2-Milk (ATM) is looking to take a majority stake in struggling Southland processor Mataura Valley Milk as it looks to expand its infant formula supply. The South Island, also officially named Te Waipounamu, is the larger of the two major islands of New Zealand in surface area; the other being the smaller but more populous North Island.It is bordered to the north by Cook Strait, to the west by the Tasman Sea, and to the south and east by the Pacific Ocean. The remaining 25 per cent of Mataura will retain the ownership of current majority shareholder, China Animal Husbandry Group (CAHG). Mataura also owns a near-new processing plant north-east of Invercargill in a region known as Southland, a developing dairy area. This morning a2 Milk confirmed that it has entered into a binding agreement relating to the acquisition of a 75% interest in Mataura Valley Milk (MVM). A2 plans to convert Mataura into a manufacturer of canned infant formula over the next two to three years, which will cost the business $112 million as a blending and canning facility will need to be built. The remaining 25% of Mataura is its current majority shareholder, China Animal Husbandry Group (CAHG). Geoff Babidge, CEO of The a2 Milk Company. A2 Milk has said it’s in discussions with Mataura Valley Milk (MVM), a New Zealand dairy nutrition business, to explore options for A2 Milk to participate in manufacturing at MNM’s facility in Southland, New Zealand. The future of the proposed Mataura Valley Milk company near Gore is in doubt after the resignation of two founding director-shareholders and a change in shareholding. "The potential investment in Mataura Valley Milk's recently commissioned facility, alongside CAHG, aligns with this strategic objective as we look to complement and build upon our current strategic relationships with Synlait Milk and Fonterra Co-operative Group, which remain in place," said Babidge. The acquisition is subject to approval from the New Zealand Overseas Investment Office, with completion expected in May. To add some context to that assessment he said the contract Mataura Valley had with Babbage Consulting, to assist Mataura Valley with the design work and project management, was in excess of $10 million alone. CAHG is a wholly owned subsidiary of China National Agriculture Development Group, which is also the parent company of a2 Milk Company’s strategic partner in China, China State Farm. ATM will pay $268.5 million for its stake, with the Chinese company, which owns one of A2 Milk’s main partners in China, holding the balance. Aaron Moody, director of Mataura Valley Milk. Bell Potter does point out, while this may pose a threat to volumes in future, Synlait owns the a2 Milk brand registration in China and this improves Synlait is negotiating power. He estimated the value of the information to Mataura Valley possessed by Mr Scott would be somewhere between $4–$4.5 million. Dominic Powell writes about the retail industry for the Sydney Morning Herald and The Age. A2 Milk has previously flagged its desire to increase its direct sales into China after the company’s key daigou reseller channel collapsed due to COVID-19, prompting a near half-a-billion sales downgrade earlier this month. Babidge said if the deal were to go ahead, CAHG's stake would be reduced to 24.9 percent. Babidge said Mataura's major shareholder, China Animal Husbandry Group (CAHG), which currently owns 78.6 percent , would reduce its stake to 24.9 percent. The new Mataura Valley Milk plant being built at McNab is forecast to pour about $90million annually, directly or indirectly, into the South’s economy. A2 Milk announced on Friday it's in discussions with Mataura Valley Milk to acquire 75.1 percent of the company, a stake worth around $270 million. He believed there was some “real” growth taking place in the district. A2 Milk Company Ltd shares are up more than 2% after it announced it may make an acquisition.. What’s the acquisition? CAHG’s parent company is the state-owned China National Agriculture Development Group, which also owns a logistics and distribution company in Shanghai which is a key partner for A2 Milk. Ann: Terms agreed - Mataura Valley Milk transaction; A2M. Mataura Valley Milk is a nutritional company which sources its produce from one of the finest grass-producing regions in the world – Southland, New Zealand. A2 Milk produces dairy products from milk that don't have A-1 protein, making it easier to be digested and absorbed by some people. Southland businessman Ian Tulloch has taken a cornerstone shareholding through Valley Enterprises, an investment entity he majority owns with another Gore investor, Paul Johnstone. A2 Milk is paying for the stake from cash reserves. China Animal Husbandry is a subsidiary of another state-owned-enterprise known as China National Agriculture Development Group, which itself is the parent of a2's distributor in China, China State Farms. CAHG will assist A2 with regulatory affairs and market access in China, which the company has said increases the strategic value of the deal. Click for more information. plant. A2 told shareholders on Thursday morning it had entered into a binding agreement to acquire 75 per cent of Mataura Valley Milk (MVM), which produces a number of nutritional and milk powders. ATM will pay $268.5 million for its stake, with the Chinese company, which owns one of A2 Milk's main partners in China, holding the balance. Lean Meats Oamaru - owned by NZ Binxi Oamaru. Southland Regional Development Strategy (SoRDS) governance group chairman, Tom Campbell, said the new plant was exactly the kind of development the group was looking for in the region”. Speirs Group, the fresh food processing business founded by the Speirs family, sold the 40 percent stake in Rosa Foods it has owned for the past decade at a "modest premium" to its $714,000 carrying value, saying there were limited ongoing synergy benefits with its other operations. a2 Milk’s outgoing CEO, Geoffrey Babidge, explained that if the deal went through, a2 Milk would invest a further NZ$100 million to enable Mataura Valley’s new plant to can infant formula. With ownership of patents and clever strategic supplier agreements it has (at this stage) locked other milk producers out of this market. A2 Milk reports $385m profit for full year, A2 milk could help the lactose-intolerant, Copyright © 2021 MediaWorks TV - All Rights Reserved, By subscribing you agree to our Terms of Access and Privacy Policy. "Due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability," said A2 Milk's chief executive Geoff Babidge. Mataura Valley, in turn, has struggled recently, posting a loss of $47.1 million in the year ended December. The A2 milk company has announced it has signed agreements to buy 75 per cent of a South Island New Zealand milk powder producer at a cost of NZD $268 million. Babidge said discussions around the potential deal were "ongoing and remain incomplete". The Mataura Valley Milk project was an example of a partnership between the council and a company. The acquisition needs approval from the Overseas Investment Office, but it … Mataura Valley owns a new processing plant that is currently focused on milk powder production. Mataura Valley Milk's plans to burn coal at its new $240 million milk treatment plant near Gore has fired up the Coal Action Network Aotearoa protest group. CAHG’s parent company is the state-owned China National Agriculture Development Group, which also owns a logistics and distribution company in Shanghai which is a key partner for A2 Milk. ATM will pay $268.5 million for its stake, with the Chinese company, which owns one of A2 Milk's main partners in China, holding the balance. Infant formula and milk seller A2 Milk has made a Christmas Eve acquisition of New Zealand dairy company Mataura in a deal it hopes will strengthen its relationships with key state-owned Chinese business partners. A2 Milk has launched a $246 million bid to buy a majority share of a Kiwi dairy manufacturer. A2 Milk has launched a $246 million bid to buy a majority share of a Kiwi dairy manufacturer. A2 Milk has acquired a majority stake in New Zealand company Mataura. Mataura Valley owns a near-new processing plant north-east of Invercargill in a region known as Southland, a developing dairy area. The triangle below illustrates the three firms occupying three different strategic positions. A2 Milk has acquired a majority stake in New Zealand company Mataura. Synlait's largest customer, a2, is seeking to vertically integrate through the potential acquisition of 75% of Mataura Valley Milk. A2 Milk/Mataura Valley Milk. Currently the major shareholder in Mataura Valley Milk is China Animal Husbandry Group (CAHG), which owns 78.6 percent. The a2 Milk Company enters into exclusive due diligence on Mataura Valley Milk August 21, 2020 The a2 Milk Company is pleased to confirm that it is engaged in discussions with Mataura Valley Milk (MVM), a New Zealand dairy nutrition business, to explore options for a2MC to participate in manufacturing at MVM’s facility in Southland, New Zealand. 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