This is such a huge announcement yet receives no discussion on HC. Where is the love for NZ's biggest exporter of everything dairy.
Imo this news stops short of suggesting there could have been a takeover offer instead Fonterra and the a2 Milk Company have decided to form a comprehensive strategic alliance giving Fonterra
i) Exclusive licensing arrangement for the production, distribution, sale and a biggie here Marketing of a2 liquid milk for sale in NZ
ii) Exclusive supply A1 protein free nutritional products in both bulk powder and consumer packaged form to a2MC, destined for sale in new priority markets in SEA and the middle East
iii) Exclusive period to explore a2 Milk branded butter, cheese and heres's another bonus China sourced liquid milk
iv) Investment in expansion of blending and canning facilities progressing towards a jointly owned packaging facility. Again massive news yet little discussion here.
As a holder in the a2 milk company I see Fonterra's global reach and this alliance having a huge positive impact for both Companies more so now for Fonterra.
Buying shares in Fonterra for me is a no brainer, it seems to be a sleeping giant although that could be the shortage of shares on offer here in Australia. I'm in for a very long and imo very rewarding hold. Also, don't forget this Company has been paying dividends for years.
GLTAH
FSF Price at posting:
$5.54 Sentiment: Buy Disclosure: Held
