New light emerges from China’s shadowy shoppers 24 Sep 2021 Cross-border traders known as daigou have been hurt by the pandemic, curbing sales of everything from A2 milk powder to Gucci handbags. Shrinking this once-thriving grey market will come at a cost, as evidenced by one Aussie company. Lower risks and clearer pictures are worth it.
Capital Calls: Wall Street B-team arrives in D.C. 23 Sep 2021 Concise views on global finance: U.S. senators sent SPAC managers letters questioning incentives in blank-check vehicles.
Capital Calls: Medline’s money machine 7 Jun 2021 Concise views on global finance: Blackstone and partners’ purchase of a majority stake in the $34 bln medical equipment maker could generate a big windfall for its founding family, without the clan members handing over the keys to their empire.
Australian milk deal looks a little too local 24 Nov 2020 Vegemite-maker Bega could buy Lion Dairy for $400 mln after regulators blocked a Chinese buyer amidst diplomatic tensions. A home-grown champion could consolidate the domestic market, but as other Aussie industries are discovering, there are few substitutes for Chinese demand.
Japan’s sour Aussie milk goes down better in China 25 Nov 2019 Mengniu is gobbling up its second Australian acquisition in two months. Seller Kirin hasn’t had much luck with loss-making Lion Dairy. But the $15 bln buyer can easily afford the $407 mln snack. Unlike the previous owner, Down Under deals should appeal to its thirsty home market.
Farmers will turn activists to mop spilt Kiwi milk 26 Sep 2019 New Zealand's Fonterra, reeling from writedowns and its worst ever annual loss, will cut back overseas. Battered investors can press for more from the world’s largest dairy exporter. That includes fixing the $3 bln giant’s contradictory structure by carving out consumer brands.
Dairy deal Down Under unlocks China prize 17 Sep 2019 State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.
Chobani swaps TPG for something sweeter 28 Jun 2018 The buyout firm exacted a high price for helping the yogurt-maker out in 2014. Now Chobani has found a Canadian pension fund to help show TPG the exit. Chobani’s value may have increased by more than 50 pct in four years. Private equity may have been unpalatable, but it worked.
Full-fat valuation suits Vietnamese dairy giant 21 Nov 2017 Vinamilk stock is up 48 pct this year, valuing it at $12 bln. It helps that regional investors Fraser and Neave and Jardines are building big stakes. But even if no takeover follows, the group stands to benefit from booming consumption in one of the most promising corners of Asia.
China setbacks spoil Australia’s dairy strategy 5 Sep 2017 Aussie farmers have tried to milk China’s growing hunger for infant formula. Rising incomes and the end of the one-child policy made the $19 bln market seem appetising. As often happens in the People’s Republic, intense competition and tough local rules have soured the outlook.
Chinese yogurt bid warrants dollop of skepticism 14 May 2017 Mainland dairy giant Yili is prepping a gut-busting $850 mln bid for Danone's Stonyfield business. The price is tempting, but many Chinese U.S. purchases have soured. And Yili was recently thwarted by regulators at home. Danone has bigger interests to consider here than cash.
Huishan board implosion begs for director reform 19 Apr 2017 Mass resignations have left a troubled Hong Kong-listed firm without a working board. Independent directors were first to eject as problems mounted. Investors need more competent and reliable sentinels. Stronger minority representation could do the trick.
Hong Kong’s margin loan rules are due an overhaul 5 Apr 2017 The market collapse of a Hong Kong-listed dairy farming group highlights the perils of share pledging. Disclosure rules in the city don't go far enough. Investors need to know early on, and in full, if large blocks of shares are tied to loans.
Milk recovery sounds sour note for food producers 19 Sep 2016 Dairy Crest says higher cream prices could hit its margins, though it expects to meet full-year guidance. Sharp falls in milk prices over the past two years mean there are now fewer cows to go around. Yet as the cycle recovers, it's hard to pass higher costs on to consumers.