China Mengniu to acquire Australia infant formula Bellamy for USD 1 bln
Sep 16, 2019 (China Knowledge) - Mengniu Dairy (02319), one of China’s largest dairy companies plans to acquire Australian infant formula maker Bellamy for AUD 1.5 Bln (USD 1 bln).
Bellamy, a milk powder maker, founded in Tasmania, a city in the south-east part of Australia owns a good reputation in the Asia-Pacific in terms of its organic infant formula and children’s food. Bellamy has applied for the license at the end of 2017, however, until now it still has not gotten approval from China’s State Administration for Market Regulation (SAMR).
The lack of a license has made Bellamy meet with obstacles in entering China’s market. China is the world’s largest infant formula market and it is a great opportunity for Bellamy to expand its overseas’ business. Recently, it revealed that it had entered into a scheme implementation deed with China Mengniu Dairy Company.
Mengniu made an approach to Bellamy months ago, with talks becoming serious in the past two or three weeks. Bellamy’s directors have unanimously backed the deal, urging the company’s shareholders to support it.
The proposed deal includes USD 12.65 per share to be paid by Mengniu, as well as a 60 cents per share with special dividend that would be paid by Bellamy’s prior to the implementation of the scheme. If the deal goes ahead, it is expected to be completed by the end of this year.
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