China's largest dairy company Yili Group signed a conditional agreement with 
New Zealand-based Westland Milk in Auckland on March 18.

Yili offered to purchase 100 percent of shares held in Westland Milk from the 
company's shareholders and take over its operations.

Zhang Jianqiu, executive president of Yili Group said that the offer would 
immediately return cash to farmer shareholders, and that the price the company 
had paid was competitive.

Through the deal, Yili will be able to combine its own expertise and experience 
with that of Westland, leading to efficiency savings and improved quality, 
Zhang said.

Yili entered the New Zealand market in 2014 and invested 3 billion yuan ($44.68 
million) to build a number of production plants.

The move is part of a major effort by Yili to expand its presence in Oceania 
and shore up its position as one of the leading dairy firms in Asia.

Westland Milk, New Zealand's second biggest dairy producer after Fonterra has 
been operating for more than 80 years and sells its products in over 40 
countries across the world.

Yili Group posted a record 16.89 percent year-on-year increase in revenues, 
according to the company's annual report released recently.

Yili said its revenues hit nearly 80 billion yuan ($11.97 billion) in 2018, 
with a net profit of 6.45 billion yuan, consolidating the firm's position as 
the top dairy firm in Asia. 

According to Yili, it has 11 brands with annual sales revenues of over 1 
billion yuan. And the annual revenues of its Ambrosial yogurt, pure milk and 
Satine organic milk have surpassed 10 billion yuan.

Source: Yili Group

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   Caption: Representatives from China's Yili Group and Westland Milk in New 
Zealand signed a conditional agreement in Auckland on March 18.