Kiwi acquires Kaikoura

Kiwi Co-operative Dairies, one of New Zealand's top processors, has purchased Kaikoura Co-operative Dairy Co.

Kaikoura voting shareholders gave the deal the nod, with 97.1% of those casting ballots agreeing to the merger, Kiwi leaders announced Nov. 20.

Under the deal, Kaikoura shareholders gain backdated benefits, becoming full and equal shareholders in Kiwi and receiving full payout without differentials effective June 1, 2000.

"As well as being another significant step in bringing the industry down to one or two large players, the integration of Kaikoura into Kiwi's manufacturing operations introduces some flexibility into the South Island to assist with increased milk flows," Kiwi Chairman Greg Gent said. "I am delighted that we have achieved a positive result and welcome Kaikoura shareholders into the Kiwi company."

The Kaikoura takeover is just one of many deals Kiwi recently recently has had on its plate. Company leaders earlier this month announced they intend to take over Marlborough Cheese. (See related article). Previously, Kiwi acquired Tasman Milk Products and Nelson Milk.

Kiwi also was a major player in New Zealand's proposed mega co-op, which might be gaining a new lease on life after being considered a failed proposition. (See related article).

The company and fellow processing giant the New Zealand Dairy Group reportedly are attempting to pick up the pieces of their failed projected partnership that was to have included seven other processors.

The two concerns purportedly met Nov. 3, the most recent of several summits held between the two processors during the last several months. A negotiating impasse in March between NZDG and Kiwi previously had ended plans to create a $4 billion multi-dairy alliance, which would encompass several other concerns, including export entity the New Zealand Dairy Board. (See related article).

Edited by Gerry Clark,
Managing Editor, Dairy Network.com