Fonterra's $48m Russian asset buy

Fonterra has confirmed it paid $48.5 million for the assets of failed Canterbury milk processing company New Zealand Dairies.

The Studholm dairy company was owned by Russian infant food manufacturer Nutritek, whose parent company went bankrupt.

Receiver BDO’s report showing dominant New Zealand milk processor Fonterra paid $48.5m for the South Canterbury assets has been confirmed by Fonterra.

NZ Dairies, in which the Russians invested more than $100m, was put into receivership in May last year, owing more than $26m to its farmers and throwing their supply future into doubt on the eve of a new dairy season.

Fonterra, which collects 90 per cent of milk in this country, was cleared by the Commerce Commision late last year to acquire the Canterbury company’s assets.

- © Fairfax NZ News