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SYDNEY, July 1 Asia Pulse - Australia's Bonlac Foods Ltd (ASX:BFL) and New Zealand's Fonterra Cooperative Group will merge their consumer food products operations in Australia and NZ.
The two said the deal creates a powerful new Australasian consumer dairy products company.
The consolidation brings together the Bonland Dairies and Peters & Brownes businesses in Australia and the Mainland Products and Tip top businesses in New Zealand.
It will create a merged company known as Australasian Food Holdings (Australia) Pty Ltd (AFHL).
Bonlac holds an 11.4 per cent shareholding in the merged group which is expected to generate annual sales in excess of $A2.0 billion ($US1.12 billion).
Fonterra is the major shareholder in AFHL with Aorangi Laboratories Ltd and Calpa Pty Ltd the other minority shareholders.
The merged group, which will employ about 4,000 people, will market leading brands like Mainland, Tip Top Ice Cream, Meadowfresh, Ferndale, Huttons, Bodalla, Western Star and Cadbury Ice Cream in Autralia, New Zealand and Oceania.
Source: HighBeam Research, AUSTRALIA'S BONLAC, NZ'S FONTERRA TO MERGE OPERATIONS.