Chinese dairy company Mengniu announced that its acquisition of Bellamy's gained new progress and it was formally approved by the Australian government.
Mengniu started acquisition of Bellamy's in September 2019. Based on the agreement signed by the two parties, Mengniu would acquire the entire stake in Bellamy's for AUD1.46 billion, which was about HKD7.86 billion. Mengniu said that the acquisition of Bellamy's would realize complementary advantages and strategic synergy with Mengniu's existing businesses.
Bellamy's was founded in 2004. The company achieved revenue of AUD270 million in 2019 financial year, which was about CNY1.31 billion. In recent years, Bellamy's enhanced its investment and distribution in the Chinese market; however, Mengniu said that it still has greater potential.
Lu Minfang, president of Mengniu Group, said that Bellamy's potential has not been fully played yet. After the acquisition, Mengniu will further develop its brand potential.
In regards to Mengniu's acquisition, the Australian government also stated their conditions. They required that Bellamy's Australian headquarters should be kept for at least ten years; the majority members of the board of Bellamy's should be Australian residents; and the company needs to invest at least AUD12 million to improve or build its infant formula processing plant in Victoria.
Be the first to comment on "Mengniu's Acquisition Of Bellamy's Approved By Australia"