Canterbury milk processor Synlait has reduced its 2019-20 forecast base milk price by 20c to $7.05/kgMS.
Synlait announced in October, last year, the conditional purchase of Dairyworks.
Today, the OIO approved the purchase.
The South Canterbury -based dairy company founded in 2001, and its subsidiaries, produce a range of well-known packaged dairy products including cheese, butter, and milk powder brands (Dairyworks, Alpine and Rolling Meadow) as well as ice cream (Deep South).
The OIO says the investment will allow Synlait to continue diversifying its business and to service the retail and food service sectors in the NZ domestic market.
“The applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen, and are of good character: the applicant has also demonstrated financial commitment to the Investment,” it says.
Synlait is majority-owned by overseas investors; China’s Bright Dairy owns 39% of the company.
Dairyworks was owned by GPS Trust, whose trustees are Margaret Elizabeth Cross, Peter David Cross, and Bruce Robertson Irvine.