FONTERRA, New Zealand's global dairy supplier, said yesterday that it would end its joint venture with Milk Powder Factory of China Beingmate.
Beingmate Infant Formula Milk Company owns 51% of the DARNUM Milk Powder Factory in GIPPSLAND, Victorian Province. Beingmate, which is in financial and operational difficulties, disclosed last week that it intended to transfer its stake in DARNUM to Great Wall Guorong, a Chinese government investment company.
Market analysts believe Fonterra may be reluctant to work with new investors.
Fonterra holds 18.8% of Beingmate Company listed on the Shenzhen Stock Exchange.
Over the past three years, Beingmate's stock price has fallen by two-thirds and now has to seek financial support from the Chinese government.
