A2 Milk confirms talks of potential dairy acquisition

The a2 Milk Company (A2MC) has fuelled speculation that it is in the running to buy the $NZ400m (A$375m) Mataura Valley Milk company in New Zealand, with the release of a statement on Monday saying it is in “discussions with a number of parties”.

While the dairy giant said it’s policy is to not respond to media speculation, the company confirmed that “it has had, and continues to have, various discussions with a number of parties in relation to potential strategic options relating to participation in manufacturing capacity and capability.”

The Australian reported on Sunday that the dairy giant is believed to be one of a handful of parties in contention for Mataura Valley Milk, which is based on New Zealand’s South Island.

The company is majority owned by China Animal Husbandry Group and New Zealand-based Bodco Dairy.

Chief executive of a2 Milk Geoffrey Babidge had signalled at the half year results in February that the company was looking to invest in manufacturing partnerships.

The dairy giant said on Monday that it is in compliance with the Listing Rules and “will continue to keep the market informed in accordance with its disclosure obligations”, if and when discussions reach a conclusion.

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