Takeover bid?
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
The Australian newspaper has linked a2 Milk to the Canadian dairy giant Saputo, which is reported to be close to making a big acquisition.
While a2 has declined to comment, takeover rumours have been rife during the past 12 months.
Once a darling of the stock exchange, with higher market value than Fonterra, a2 has seen its fortunes tumble as Covid set in.
Over the past year it has struggled to restore its earnings, profits and share price in the face of disrupted sales channels, excess stock and a slide in sales of infant formula in the key Chinese market.
Saputo, which already has a big presence in Australia, has an appetite for pouncing on dairy assets in key milk producing regions.
