We are one of New Zealand's largest food production and supply groups. Ann: Terms agreed - Mataura Valley Milk transaction; A2M. future-proof electricity supply for the new Mataura Valley Milk dairy nutrition plant at McNab near Gore. 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. Earlier this month the company posted a record profit of $385.8 million. Babidge said if the deal were to go ahead, CAHG's stake would be reduced to 24.9 percent. 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. The Mataura Valley Milk project was an example of a partnership between the council and a company. A2 Milk Company Ltd shares are up more than 2% after it announced it may make an acquisition.. What’s the acquisition? Mataura Valley owns a near-new processing plant north-east of Invercargill in a region known as Southland, a developing dairy area. 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. 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. 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”. 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. The acquisition is subject to approval from the New Zealand Overseas Investment Office, with completion expected in May. 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 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. A2 Milk looks to boost Chinese connections with $250m acquisition. BODCO - Hamilton - 40% owned by China Animal Husbandry. China Animal Husbandry Group, a state-owned-enterprise, now owns 82 per cent of Mataura Valley Milk. It has annual revenues of $1.6 billion and more than 10,000 employees, and wholly or partially holds 10 … 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 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. A2 Milk is paying for the stake from cash reserves. A2 Milk is paying for the stake from cash reserves. The current minority shareholders are a mix of private investors and farming interests. 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 triangle below illustrates the three firms occupying three different strategic positions. Credit:Louise Kennerley. With ownership of patents and clever strategic supplier agreements it has (at this stage) locked other milk producers out of this market. 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. CAHG will assist A2 with regulatory affairs and market access in China, which the company has said increases the strategic value of the deal. 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. Babidge said discussions around the potential deal were "ongoing and remain incomplete". 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. "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 also owns a near-new processing plant north-east of Invercargill in a region known as Southland, a developing dairy area. Southland businessman Ian Tulloch has taken a cornerstone shareholding through Valley Enterprises, an investment entity he majority owns with another Gore investor, Paul Johnstone. 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. 0.98% $10.11 the a2 milk company limited. The stake will cost A2 $NZ268.5 million ($250 million) and will be funded from the company’s existing cash reserves. 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. Geoff Babidge, CEO of The a2 Milk Company. 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. Click for more information. Dominic Powell writes about the retail industry for the Sydney Morning Herald and The Age. 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. 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. Lean Meats Oamaru - owned by NZ Binxi Oamaru. He believed there was some “real” growth taking place in the district. Currently the major shareholder in Mataura Valley Milk is China Animal Husbandry Group (CAHG), which owns 78.6 percent. The acquisition needs approval from the Overseas Investment Office, but it … "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. He estimated the value of the information to Mataura Valley possessed by Mr Scott would be somewhere between $4–$4.5 million. Clutha-Southland MP Hamish Walker said MVM had been working hard to earn the respect and trust of Southlanders. 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. 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. The deal had been foreshadowed by A2 which confirmed it had begun discussions in August. 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. A2 Milk has acquired a majority stake in New Zealand company Mataura. The acquisition needs approval from the Overseas Investment Office, but it … A2 Milk has acquired a majority stake in New Zealand company Mataura. Mataura Valley owns a new processing plant that is currently focused on milk powder production. A2 Milk is paying for the stake from cash reserves. 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. The remaining 25 per cent of Mataura will retain the ownership of current majority shareholder, China Animal Husbandry Group (CAHG). 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. As a milk marketing company (a2 owns shares in Synlait) and is now potentially buying into Mataura Valley Milk)). 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. 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