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China Mengniu Offers 59% Premium for Baby-Formula Maker Bellamy's

Offer for Australian infant formula-maker is a 59% premium
Board unanimously recommends offer; stock surges in Sydney

Operations at the Van Diemen's Land Dairy — Photographer: Brendon Thorne/Bloomberg

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By Edward Johnson and Jinshan Hong

September 15, 2019 at 10:39 PM UTC

Updated on

September 16, 2019 at 3:18 AM UTC

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China Mengniu Dairy Co. agreed to buy organic infant formula maker Bellamy’s Australia Ltd. for A$1.5 billion ($1 billion), securing a premium brand in one of the fastest-growing segments of the dairy market.

The Hong Kong-based firm offered A$13.25 per share Monday for Bellamy’s, a sizable 59% premium to the stock’s last closing price. The Launceston, Tasmania-based company’s board unanimously recommended the offer.