Japan’s Megmilk Snow Brand bids for Beston Global’s cheese and lactoferrin business in Jervois, South Australia, amid Beston’s financial challenges and international expansion plans.
Beston Global Food Co. (BFC), an Australian leader in dairy production, has announced that Japan’s Megmilk Snow Brand Co. has made a bid to acquire its cheese and lactoferrin production business located in Jervois, South Australia. This move follows ongoing discussions about the future of Beston’s dairy assets.
About Beston Global Food Co.
Beston Global Food Co., headquartered in Adelaide, is Australia’s largest dairy company and the seventh largest in the country. The company has been facing financial challenges due to a significant rebound in milk production and increased competition from dairy imports. In response, BFC has been exploring options to optimize its business, leading to discussions with potential buyers for its dairy units.
Megmilk Snow Brand Co., a prominent Japanese dairy firm listed on the Tokyo Stock Exchange, has expressed interest in acquiring Beston Global’s Jervois facility. Megmilk Snow Brand is one of Japan’s largest dairy companies, with a market capitalization of approximately A$1.7 billion ($1.13 billion). The company has a history of expanding its international footprint, including acquisitions in Australia such as Unicorn Cheese Company and Udder Delights.
Deal Details
The non-binding offer from Megmilk Snow Brand is subject to several conditions, including approvals from banks and shareholders. Beston Global’s board is currently reviewing the offer and negotiating terms with Megmilk Snow Brand. The specifics of the deal, including the total purchase price, are still being clarified.
The potential acquisition highlights a significant shift in the Australian dairy industry landscape, as Beston Global looks to streamline its operations and address financial pressures while Megmilk Snow Brand seeks to bolster its presence in the Australian market.
For further updates on this transaction and its impact on the dairy industry, stakeholders are advised to follow developments from both Beston Global and Megmilk Snow Brand.
