By Aimee McClinchy
Friday 5th May 2000 |
Text too small? |
The merger affecting the board's Australian operations has, for the meantime, replaced the $A2.5 billion talks between Dairy Farmers and Bonlac, and formed the first transtasman alliance across two deregulating dairy industries.
But Dairy Farmers this week indicated this was not the end of talks between itself and Bonlac, two of Australia's largest dairying entities, and said there might be opportunities for joint ventures or alliances with the merged Dairy Board and Bonlac entity in areas such as distribution.
The board has confirmed it will look to form other global ventures and mergers to strengthen its marketing and exporting position.
The heads of agreement sees the board merge its Australian consumer business with Bonlac's in a 50/50 joint venture worth $420 million. Its Australian ingredients business will be merged into Bonlac, with the board responsible for exporting Bonlac's ingredients supplies. The board paid a reported $120 million for a 25% stake in Bonlac.
The Dairy Board has been described as a strong partner for Bonlac, whose ratings outlook was revised from stable to negative in mid-April by Standard & Poor's, with a credit rating of BBB.
S & P's outlook for the board is also negative, with a credit rating of AA, with S & P saying it would not reassess it until the deal had been ratified in September.
Meanwhile, the local manufacturing dairy companies, led by Dairy Group and Kiwi Co-op Dairies, are sitting tight and reassessing their future in the wake of the failed mega co-op, and this week foiled farmer plans to progress mega co-op talks.
The board's merger, focused on marketing and exporting, is independent of any farmer plans to merge the country's manufacturing dairy companies in a bid for some form of mass scale.
No comments yet
Skellerup achieves another record result
August 21st Morning Report
Me Today signals capital raise and provides trading update
Seeka Announces Interim Result and Updates Guidance
FBU - Fletcher Building announces FY25 Results
August 20th Morning Report
RUA - New Zealand grown products support Rua's global strategy
Devon Funds Morning Note - 19 August 2025
Seeka Announces 15 cent Dividend
MCY - Major renewable build advanced despite 10% earnings dip