King & Wood Mallesons (“KWM”) advised Fonterra Co-operative Group Limited (“Fonterra”) to successfully acquire 18.82% shares in Beingmate, a leading infant formula producer in China with its shares listed on the Shenzhen Stock Exchange, through partial tender offer. The transactional value of this acquisition is approximately RMB 3.464 billion. The share acquisition is a significant part of the strategic collaboration between the parties. The strategic collaboration also includes the establishment of a partnership between the parties in Australia and a general distribution licensing arrangement in China.

This project is led by KWM’s partners Xu Ping and Tianning Ma, together with the core members Mengbi (Morgan) Jiang (Shanghai corporate partner) and Liu Cheng in KWM (Beijing anti-trust partner).

While the Chinese government has been consolidating this highly fragmented market, this complex deal is expected to “shake up” the Chinese infant formula market by bringing New Zealand ingredients and qualities into China.

Xu Ping, a corporate partner of KWM, commented: “Fonterra is a key long-term client of KWM, we have been assisting Fonterra in its investment and business expansion in the China. We are most pleased to advise Fonterra on this exciting and strategically important project.  For Fonterra, this long-term partnership is a big step to establish a significant footprint in the dynamic China infant formula market.”

Ma Tianning, a securities partner of KWM, commented: “this transaction is innovative and creative for the Chinese equity capital market. We will continue to represent Fonterra in implementation of the various projects under the strategic partnership.”

Fonterra is the world’s leading milk processor and the largest dairy exporter in the world. The company is headquartered in New Zealand and operates in markets all around the world. Fonterra is New Zealand's largest business, with annual revenue around $16 billion.  Fonterra has been booming its China related business continuously, including a recent signing of an agreement with Abbott in their strategic alliance in terms of dairy nutrition and farming in China.

Beingmate is a leading Chinese producer of infant food headquartered in Hangzhou, with Beingmate being a well-known brand in the domestic market of infant formula dairy products in China.