The a2 Milk Company gets Mataura Valley Milk green light

22-Jul-2021 - Last updated on 22-Jul-2021 at 09:18 GMT

Completion of the deal to acquire 75% of MVM is expected from the end of July. Pic: a2MC

The a2 Milk Company (a2MC) has confirmed the New Zealand Overseas Investment Office (OIO) has given consent to a2MC’s proposed acquisition of a 75% interest in Mataura Valley Milk (MVM), a dairy nutrition business, located in Southland, New Zealand.

Completion of the transaction is now to set to take place with effect from the end of July.

The company said the proposed acquisition will provide the opportunity for it to participate in nutritional products manufacturing, provides supplier and geographic diversification, and strengthening relationships with key partners in China.

A key feature of a2MC’s proposed investment in MVM is that MVM’s current majority shareholder, China Animal Husbandry Group (CAHG), will retain a 25% interest in MVM alongside a2MC. CAHG is a wholly-owned subsidiary of China National Agriculture Development Group Co., Ltd, which is also the parent company of a2MC’s strategic logistics and distribution partner in China, CSFA Holdings Shanghai, Co., Ltd. (China State Farm).

A further update on the acquisition will be provided when a2MC’s full-year results are announced in August.