Bonlac shareholders say yes to Fonterra

MELBOURNE - Bonlac shareholders have overwhelmingly voted in favour of a full takeover of their company by Fonterra.

Fonterra chairman Henry van der Heyden said the company would now expand its milk supply, improve its balance sheet and create greater manufacturing scale and efficiencies.

"Full ownership of Bonlac is entirely consistent with our key objectives in Australia and now it is up to Fonterra to go ahead with plans to build more efficient production, a stronger domestic branded business and contribute further to a globally competitive sector," he said.

In June, Fonterra said it wanted to increase its stake in Bonlac from 50 per cent to full ownership.

Chief executive Andrew Ferrier said the company would first optimise capacity at Bonlac's plants to grow its milk supply. "This is a successful and significant step for us in Australia but we still believe there is further consolidation to come in the industry here.

"We see this as a key local market for Fonterra and we will be part of any more industry changes."

Fonterra abandoned its proposed takeover of National Foods in April after losing to Philippines-based San Miguel.

- AAP