Field Notes, powered by KPMG, is a weekly news update on news nationally and globally from the agri-food sector.
China’s Mengnui Dairy has placed an offer for Tanzania-based Bellamy’s Australia, the parent company of infant formula maker Bellamy’s Organic. The move comes as Beijing has advocated self-sufficiency in the baby formula market. Bellamy’s announced the proposed cash purchase, stating that the board has unanimously concluded the offer is in the best interests of shareholders. Mengnui is offering AUD$12.65 (approx. NZD$13.66) per share which is a 59% premium on share prices from last week. The company hit its peak in 2018, before slumping 62% to today’s share prices. In Bellamy's most recent annual reports, the company acknowledges that substantial portion of its Australia sales are actually routed to China through online re-sales which sell their products in China for up to three times the profit.