Sanlu to be sold?

NZPA notes media reports from Beijing which say Sanlu, in which Fonterra has a 43% stake may be sold to its rival Sanyuan Food Company:

Sanlu group may be forced into bankruptcy and taken over by Sanyuan, the China Daily reported.

Fonterra, the world’s biggest dairy trader, owns 43 percent of Shijiazhuang Sanlu Group Co., but to day told the Wall Street Journal that it hasn’t been approached about selling its stake.

“No one has contacted our people on the board about a purchase,” Fonterra chief executive Andrew Ferrier said.

. . . A  Sanyuan official, who refused to give her name, confirmed to the China Daily the company’s acquisition plans.

Sanyuan has emerged untainted in the recent milk scandal. As a result, its share prices have soared and sales skyrocketed.

This confirms yesterday’s post on Inquiring Mind.

3 Responses to Sanlu to be sold?

  1. dutchie down south says:

    It is always easy to say on hindside, but I would say “good riddance..” I have tried to follow some European web sites on this issue and it occured to me that not a lot of foreign media have lead the link between Sanlu and Fonterra and with this New Zealand.
    fonterra should put their shareholders first and try to protect the Fonterra brand from further damage and this might be done by counting their losses and sell up…

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  2. adamsmith1922 says:

    Given provisions in the NZ-China FTA on property rights and Fonterra saying they know nothing, is this a sale or sesquestration?

    Will the NZ Government pressure Fonterra to agree to whatever is offered?

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  3. […] to Homepaddock Adam is aware that his report yesterday from Singapore on the likely takeover of San Lu was […]

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