:. Food Industry News

Categories: Mergers and Acquisitions

Australia's Dairy Farmers Approves Kirin Unit Bid

Source: Reuters
13/11/2008

Melbourne, Nov 13 - Shareholders in Australia's Dairy Farmers milk co-operative on Thursday approved a A$910 million ($580 million) takeover bid by National Foods, an Australian unit of Japanese brewer Kirin Holdings.

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The successful vote, with 96.3 percent in favour of the deal, puts the takeover of Australia's top milk manufacturer on track for completion on November 26.

"The reality is that National Foods is taking yet another step to become a significant large-scale food and beverage company focused not only on the domestic market of Australia but the growth opportunities in South East Asia," National Foods Managing Director Ashley Waugh told reporters.

Australia has been fertile ground for Kirin acquisitions as it diversifies away from a shrinking beer market in Japan. The group bought National Foods last year and also owns 46 percent of Australia's second-ranked brewer, Lion Nathan Ltd.

Kirin's National Foods unit also said it would not ignore any further acquisition opportunities that came its way but, given its biggest interest was dairy, it was unlikely that anything would emerge in the short to medium term.

It is focused on divestments instead because it has to sell some businesses to secure Australian takeover approval.

"I can confirm that we are in discussions with a number of interested parties in Australia and offshore," Waugh said, though he declined to put a value on the divestments.

Dairy Farmers and National Foods combined will have revenue of around A$3.5 billion a year with brands that include Coon cheese, Dairy Farmers milk, Yoplait yoghurt and Berri Juice.

The takeover still requires court approval and the completion of revised milk-supply agreements. "We are making very good progress in that regard," Dairy Farmers Chief Executive Rob Gordon told reporters.



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