WELLINGTON (Reuters) - New Zealand's Fonterra Co-operative Group Limited (NZ:FSF) (NZ:FCG) said on Monday it had bought 18.8 percent of China's Beingmate Baby and Child Food Co. Ltd (SZ:002570) in a partial takeover offer aimed at increasing its presence in China's branded dairy industry.
As part of the deal, the world's largest dairy exporter by volume picked up 192 million shares in the Chinese baby food and infant formula maker, paying 18 yuan per share for a total cost of 3.464 billion yuan (375 million pounds).
The price paid was in line with plans announced by the two companies in August, although Fonterra has purchased a slightly smaller slice of the company than initially planned.
"Our goal was to acquire up to 20 percent. We are extremely satisfied and confident that the partnership can and should proceed on the basis of the 18.8 percent stake," Fonterra Chief Financial Officer Lukas Paravicini said in a statement.