Image Source: AsiaOne
China Mengniu Dairy has offered A$1.5 billion (S$1.4 billion) to take over Australian infant milk formula maker Bellamy, reflecting the dairy products giant's goal to expand aggressively abroad. The Inner Mongolia company said on Monday that it would buy Bellamy at A$13.25 a share, which represents a 59 per cent premium to the Australian company's closing price of A$8.32 on Friday. The deal, accepted by Bellamy's board, is subject to a review by Australia's Foreign Investment Review Board, Mengniu said in a filing to the Hong Kong stock exchange. "Infant milk formula is one of the largest and fastest-growing segments among all dairy segments in China driven by increasing disposable income and growing child spending," Mengniu said in a statement. "Future growth is underpinned by continuous premiumisation and increasing penetration into lower-tier cities which have larger households and higher birth rates."
Source: AsiaOne