The ministry has granted antitrust and strategic foreign investment approval for the proposed partnership, Fonterra told the ASX this afternoon.
The approval brings Fonterra a step closer to proceeding with the partnership, a move the company announced last August to grow its presence in its most important export market.
Following further regulatory approvals, Fonterra will proceed with a partial tender offer to buy up to 20 per cent in Beingmate. The stake is currently worth about $680 million, based on Beingmate’s current market capitalisation of $3.4 billion.
Beingmate, based in China’s eastern city Hangzhou, is the country’s leading manufacturer of infant formula, nutritional rice powder and other infant foods.
Under the partnership, Fonterra and Beingmate will also set up a joint venture to buy Fonterra’s Darnum plant in Australia, as well as a distribution agreement to sell Fonterra’s Anmum brand in China.
Source: The Australian