Aspen gets green light to sell baby formula business in New Zealand

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The transaction is aimed at helping Africa's largest drug maker reduce its growing debt pile.

The transaction is aimed at helping Africa’s largest drug maker reduce its growing debt pile.

JSE-listed Aspen Pharmacare Holdings said on Friday the New Zealand overseas investment office had granted approval to Lactalis to acquire Aspen’s baby milk formula business in that country. The multinational pharmaceutical company last month said New Zealand authorities had indicated that the sale of its infant formula business to French dairy group Lactalis International for R11.76 billion could be approved soon.

“All conditions precedent requiring third party consents and approvals for the divestment by Aspen of its nutritionals business to Lactalis have now been fulfilled, with the remaining conditions precedent being within the control of the parties,” it said on Friday.Aspen said the parties were mutually committed to closing the deal by the end of this month.

 

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