Chinese buyer leading bid for Murray Goulburn

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As seen in Dairy Australia 's Dairyweb News, 21 September

Chinese dairy Mongolia Yili Industry Group has made a high bid for MG in the first round of the sale of the company being run by Deutsche Bank.

Bid for MG and part of the organisation closed last Friday, but sources are saying Yili has made a generous offer that could be worth $1.20 a unit. This is a significant increase on the current trading price of 86c. It has hired Bank of America Merrill Lynch as its adviser.

Other Chinese bidders include Inner Mongolia Fuyuan Farming, a subsidiary of Yili’s rival in China Mengniu Dairy. It is a major shareholder in Burra Foods. Another keen bidder is A2 Milk looking to boost its Australian milk supply. Saputo, Parmalat, Bega and Fonterra are also in the mix looking to buy either the entire company or parts of the operation.

The successful buyer will face regulatory hurdles with the ACCC for the local bidders and the Foreign Investment Review Board for overseas players.