a2 Milk buys stake in Synlait Milk

Company News

by Rachael Jones

New Zealand's a2 Milk Company (ASX:A2M) has announced it will acquire an 8.2 per cent stake in Synlait Milk (ASX:SM1) for about $148 million.

The milk producer says it will would acquire the stake from Japan's Mitsui & Co at a price of NZ$10.90 per share for total consideration of NZ$161.8 million.

The MD of the company says this investment is consistent with the A2Milk company’s commitment to long-term supply arrangements with partners such as Synlait Milk and Fonterra Co-operative Group.

Shares in a2 Milk Company (ASX:A2M) are trading up 0.73 per cent to $9.63.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.