Chinese dairy companies including Bright dairy and China Mengniu Dairy Co. have been seeking acquisition targets to improve the quality of their supply chain amid safety concerns. Furthermore, the M&A could even benefit Chinese dairy companies from foreign brands’ positive reputation and image.
- Synlait Milk, 51% owned by China’s Bright Dairy& Food Co. and 49% owned by Synlait Ltd, said it has set a final price for its IPO in July. The IPO includes NZ$75 million of new capital and NZ$38.7 million from a secondary raise of capital from existing Synlait Ltd. investors.
- Ashly announced at the beginning of the year that they are going to invest 1.1 billion RMB to establish factories in New Zealand to produce finished milk powder and semi-finished milk powder.
- Yili also announced in April that the plan of producing 47 thousand ton infant formula in New Zealand was approved by Chinese and New Zealand government.
- Since Pfizer announced to sell Weyth infant formula assets in July 2011, Danon, Nestle, and Mead Johnson got involved in this acquisition. In February 2012, Danon cooperated with Mead Johnson to compete with Nestle to get Weyth for a total investment of 11 billion U.S.D. Eventually, Nestle successfully purchased Weyth infant formula business for 11.85 billion U.S.D in April 2012.