Infant formula and milk seller A2 Milk has made a Christmas Eve acquisition of New Zealand dairy company Mataura in a deal it hopes will strengthen its relationships with key state-owned Chinese business partners.
CAHG’s parent company is the state-owned China National Agriculture Development Group, which also owns a logistics and distribution company in Shanghai which is a key partner for A2 Milk.
"We have worked closely with CAHG and MVM over recent months and have developed relationships with both teams that we are confident will provide a strong foundation for the business going forward." A2 plans to convert Mataura into a manufacturer of canned infant formula over the next two to three years, which will cost the business $112 million as a blending and canning facility will need to be built.In the interim, Mataura will continue to manufacture its current nutrition and milk powders, during which the business will operate at earnings break-even, with plans to become profitable by the 2025 financial year.
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Argh, dammit.
Time to stop buying A2