Bega confident on China relations as Lion merger tied off

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Bega confident on China relations as Lion merger tied off | domp

a mammoth purchase that will add a number of prominent brands such as Yoplait, Big M and Pura Milk to Bega’s stable.These, alongside Bega’s existing Vegemite, peanut butter and eponymous cheese brands, are set to double the business’ revenue to $3 billion annually and provide $41 million in cost savings.

“You need to be meeting your customers’ needs, and you need to present as the best option in terms of what you can deliver them rather than holding them to ransom,” he said. However, Mr Irvin also acknowledged the tie-up of the two businesses marked a further consolidation of Australia’s already shrinking dairy industry but said he viewed further consolidation within the space unlikely.Bega’s $560 million purchase of Lion dairy and drinks would not have been possible if the federal government had not stepped in and prevented a sale of the business to Chinese dairy business Mengniu, arguing the deal was contrary to the national interest.

Mr Irvin said the company’s focus for the coming months will be integrating the new business and working towards the company’s goal of achieving a double-digit increase in earnings per share by 2022, though he noted some additional “bolt-on” acquisitions could still be on the cards.

 

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