KEY POINTS:
Japanese brewery Kirin Holdings, which snapped up the spoils of Fonterra's failed bid for National Foods in Australia, is set to tighten its grip on milk markets there by buying the Dairy Farmers cooperative for A$900 million ($1112m).
Kirin is on the verge of acquiring Sydney-based Dairy Farmers, the Australian Financial Review (AFR) reported today.
The company bought National Foods from Philippines brewery giant San Miguel after outbidding Fonterra.
It is expected to follow the takeover with a widespread rationalisation of the dairy industry in the eastern states where Fonterra is trying to build critical mass in its own operations.
Dairy Farmers' shareholders will later this year vote on the proposal which has already received clearance from the Australian Competition and Consumer Commission.
- NZPA
