<article>China Mengniu Dairy Company Ltd will buy infant formula maker Bellamy&#8217;s Australia Ltd for A$1.43 billion ($982.98 million), the Australian company said on Monday after its board accepted the Chinese firm&#8217;s offer.</article>

China Mengniu Dairy Company Ltd will buy infant formula maker Bellamy&#8217;s Australia Ltd for A$1.43 billion ($982.98 million), the Australian company said on Monday after its board accepted the Chinese firm&#8217;s offer.
The A$12.65-per-share deal represents a 52% premium to Bellamy&#8217;s Friday closing price of A$8.32, excluding a special dividend of $0.60 per share paid by Bellamy’s prior to implementation of the scheme.
Bellamy’s board unanimously recommended that the shareholders vote in favour of the offer.
&#8220;It (Mengniu) offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia,&#8221; Bellamy’s Chief Executive Officer Andrew Cohen said in a statement.
Last month, Bellamy&#8217;s said its annual profit almost halved as sales dropped 19%, hampered by a Chinese crackdown on imports.
The company, once feted for its China exposure, has faced increasing challenges with new Chinese customs rules for e-commerce purchases crimping informal &#8220;daigou&#8221; exports and required clearances from health authorities delaying sales from a Bellamy&#8217;s plant in Australia.
Reuters

Bellamy's, once feted for its China exposure, has faced increasing challenges with new Chinese customs rules for e-commerce purchases.

China Mengniu Dairy to buy Australian baby formula firm for $983m

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China Mengniu Dairy to buy Australian baby formula firm for $983m

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