:. Food Industry News

Categories: Mergers and Acquisitions

Singapore's Olam Pays $76m for NZ Dairy Trust Stake

Source: Reuters
08/07/2008

Singapore, July 8 - Singapore commodities firm Olam International will buy a 24.99-percent stake in New Zealand dairy processor Dairy Trust for NZ$101.1 million ($76.2 million), Olam said on Tuesday.

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The purchase would expand Olam's source of dairy products in Oceania and the United States, the firm said, adding that it wanted to raise its stake to 30 percent if it gets the approval from authorities.

Under the deal, Olam will buy the stake in Dairy Trust and in turn sell its 19.9-percent stake in New Zealand's cheese maker Open Country Cheese Co to Dairy Trust, Olam said.

Olam said on July 2 it would not bid for Australian food producer Dairy Farmers, but would hunt for other investment opportunities in the dairy business in New Zealand and Australia.

Olam this month entered a joint venture with Singapore's palm oil firm Wilmar to buy a 20-percent stake in PureCircle Ltd, a leading natural sweeteners producer, for $106.2 million.



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