Singapore-based food ingredients group Olam International has snapped up just under 25% of New Zealand dairy processor Dairy Trust.
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Olam plans to buy 24.99% of Dairy Trust and is looking to take its stake to 30% if it gets regulatory approval, the company said today (8 July).
The deal, which also includes the sale of Olam’s stake in New Zealand’s Open Country Cheese Co. to Dairy Trust, is worth just over NZ$101m (US$75.9m).
Olam’s move to expand in Oceania comes a week after it announced it would not be making a bid for Dairy Farmers, the Australian group.
Sunny Verghese, Olam’s MD and CEO, said the move to buy a stake in New Zealand’s second-largest dairy firm was part of the company’s strategy to build a global dairy business.
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By GlobalData“We believe our investment in Dairy Trust is well-placed to support our entry strategy in New Zealand and participate in its large and growing dairy sector,” Verghese said.
Dairy Trust is a distant second to Fonterra in New Zealand’s dairy sector. Fonterra processes over 90% of the milk produced in the country.
