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A2 Milk plans to buy majority stake in Mataura Valley Milk

The Mataura Valley Milk plant.

New Zealand’s A2 Milk Company has made a non-binding indicative offer of around NZ$270 million for a controlling stake in Kiwi dairy business Mataura Valley Milk.

The A1 beta-casein-free milk-production firm is now entering an exclusive due diligence investigation into Mataura Valley Milk’s production facilities in Southland as it works with the company to develop and formalise documentation. The exercise has the approval of Mataura’s current majority shareholder China Animal Husbandry Group. If the deal proceeds, A2 Milk will have a 75.1 per cent stake in Mataura.

“As previously announced, due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability,” said A2 Milk Company CEO Geoff Babidge. “The potential investment in Mataura Valley Milk’s recently commissioned facility, alongside China Animal Husbandry Group, 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.

“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.”

Discussions regarding the transfer of ownership remain in progress and are not expected to be finalised until near the end of A2’s next financial year.

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