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Chinese dairy giant Yili inks conditional agreement with New Zealand's Westland

Xinhua | Updated: 2019-03-19 13:55
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Chinese customer shops for a carton of Yili pure milk at a supermarket in Xuchang city, Central China's Hunan province, on Nov 16, 2014. [Photo/IC]

AUCKLAND - China's Inner Mongolia Yili Industrial Group Company Limited signed a conditional agreement Monday with New Zealand's Westland Co-operative Dairy Company limited.

Yili Group, one of the world's leading dairy producers, has offered to purchase 100 percent the shares of Westland's existing shareholders and take over operation of the company.

Chief President of the Yili Group Zhang Jianqiu said the offer would result in an immediate cash windfall to farmer shareholders, as well as a competitive milk payout.

Westland and Yili would also be able to share the expertise each entity has developed over years in the industry, which will lead to increased innovation, Zhang said.

"The Yili Group sees our offer to Westland farmer shareholders as very much a partnership arrangement," he said.

"We believe we are offering farmer shareholders a stronger financial future, and greater access to international markets.

Zhang also said Yili had already demonstrated its commitment to local dairy farmers and its determination to be a good corporate partner with New Zealand dairy farmers.

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