Bellamy’s board backs $1.5 billion China takeover
Formula company Bellamy’s Australia has entered into a $1.5 billion takeover scheme with China Mengniu Dairy.
On Monday, Bellamy’s announced a scheme worth $13.25 cash per share, with the board saying that it is in the best interests of shareholders.
Bellamy’s chief executive Andrew Cohen said in a statement to the ASX that Mengniu was “an ideal partner for (the) business”.
“It offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia,” Cohen said.
In June, China revealed plans to exceed 60 per cent self-sufficiency for baby formula and improve the quality of domestic brands, leaving ANZ brands reeling.
“Bellamy’s is a leading Australian brand with a proud Tasmanian heritage and track record of supplying high quality organic products to Australian mums and dads,” Mengniu chief executive Jeffrey Lu Minfang said.
“This leading organic brand position and Bellamy’s local operation and supply chain are critical to Mengniu.”
The takeover would be subject to approval by the Foreign Investment Review Board.
In June, Mengniu became the first Chinese fast-moving consumer goods company to become a TOP Partner after signed a 12-year partnership with The International Olympic Committee (IOC) and Coca-Cola. The deal supports the company’s international expansion plans to become one of the top dairy producers in the world by 2025.