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Shanghai-based Bright Dairy and Food says it will invest nearly 400 million yuan for a 51 percent stake of Synlait Milk, one of New Zealand's five key milk processors.
Synlait Milk is famous for its high quality milk powder, and that's what Bright Dairy is interested in. The president of Bright Dairy says the company is set to benefit substantially from the deal.
Guo Benheng, President of Bright Dairy said "The deal is very helpful for our company to improve our management, technologies and product, as New Zealand's dairy industry is one of the world's most advanced. "
As the first Chinese milk producer to go international, the deal also provides Bright Dairy with a wider horizon.
Guo Benheng said "The most important influence of the deal is that it will provide the company with a global prospective. "
The share price of Bright Dairy and Food rose more than 2 percent today, on the back of yesterday's 10 percent gain following the M&A announcement.