Synlait Denies Takeover Talks with Fonterra & a2 Milk
Synlait Milk (NZ:SML) issued a statement on Monday confirming that it is not involved in any discussions with Fonterra or The a2 Milk Company regarding the takeover speculation reported in the media. The company said it had noted the reports but had no further comment.
The speculation originated from a report in The Australian suggesting that Fonterra and a2 Milk were exploring a joint bid to take Synlait private, with a2 Milk potentially acting as a funding partner for Fonterra.
Synlait’s relationship with a2 Milk has historically included exclusive manufacturing rights for certain infant formula products, including the China‑label range, but those exclusivity arrangements were terminated when a2 Milk sought to diversify its supply chain.
Shareholding: a2 Milk currently holds approximately 19.8% of Synlait following its participation in the 2024 recapitalisation, while Bright Dairy owns 65.25%, giving it majority control. Abbott acquired Synlait’s North Island operations earlier this year as part of Synlait’s asset sales under its restructuring plan.
Synlait completed a major refinancing in June and continues to strengthen its balance sheet after years of high debt and weak earnings. The Dunsandel facility in Canterbury remains a key asset, capable of processing large volumes of milk for its nutritional and dairy processing operations.
Any potential transaction would be complicated by the existing ownership structure, with Bright Dairy’s majority stake and a2 Milk’s near‑20% strategic holding.