Yili set to acquire Westland Milk for NZ$588mn
China’s largest dairy firm Yili Group has announced that it is set to acquired New Zealand’s Westland Milk, with NZ Herald reporting that the deal is worth around NZ$588mn.
According to Yili’s press release, the firm’s offer is for 100% of Westland’s shares, and Westland itself has said that the cash would be returned immediately to its farmer shareholders.
Westland is New Zealand’s second-largest dairy producer, with the Fonterra Co-operative being the country’s leading firm in the space.
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Yili aims to expands its APAC presence through the acquisition in Oceania, and said in its press release that it will combine its expertise with Westland’s to drive operational efficiency and enhanced product quality.
According to the press release, Yili’s revenues hit US$11.97bn in 2018 and has consolidated its position as Asia’s leading dairy firm.
The move is not Yili’s first in New Zealand. In 2014, the company invested US$44.68mn to develop a number of production facilities in the country.