Mumbai: Biscuits major Britannia Industries Tuesday said it will buy out its partner, Fonterra Brands, from their joint venture — Britannia New Zealand Foods Pvt Ltd (BNZF).
The company has entered into an agreement with Fonterra Brands (Mauritius Holding) for acquiring the latter’s 49% equity and preference share holding in BNZF, the joint venture firm engaged in the dairy business, Britannia said in a filing to the Bombay Stock Exchange.
Britannia, however, did not disclose the financial details of the deal.
The acquisition is subject to approval from the Reserve Bank of India, the filing added.
BNZF is a joint venture company founded in 2002 by Britannia Industries Limited (BIL) and Fonterra Co-operative Group of New Zealand. The company focuses entirely on the dairy business, with cheese being its flagship product. All products are marketed under the ‘Britannia MilkMan’ brand.
Fonterra Cooperative Group is New Zealand’s largest company and among the 10 largest dairy companies in the world. The dairy expertise and global experience for the joint venture comes from Fonterra Cooperative while Britannia’s contribution is its brand name, large distribution network and the understanding of the Indian market.
Shares of Britannia Industries were trading at Rs1558.20, up 0.96% on the BSE.