You are using an older browser version. Please use a supported version for the best MSN experience.

Ownership change of food tester

NZ NewswireNZ Newswire 18/04/2016 Paul McBeth

New Zealand's AsureQuality has teamed up with French testing and inspection group Bureau Veritas to buy out its partners in Australia's Dairy Technical Services for an undisclosed sum.

AsureQuality will own 49 per cent and Bureau Veritas 51 per cent of Melbourne-based DTS under a joint management approach, the state-owned enterprise's chief executive John McKay said.

AsureQuality already owned 25 per cent of the Australian food and beverage testing company, and had previously declined to comment on reports it was looking to buy out DTS's other shareholders Fonterra Cooperative Group, Murray Goulburn Cooperative, and Warrnambool Cheese and Butter Factory.

Mr McKay declined to comment on the sale price, citing commercial sensitivity, although in separate statements WCB said it would record an $A8.4 million ($NZ9.34 million) gain on the sale of its 13.3 per cent holding and Murray Goulburn said it would reap $A18 million for its 25.3 per cent stake. Fonterra didn't say what it would get for its 36 per cent share.

Last December, the Australian Financial Review reported the buyout talks valued DTS at between $A80m and $A100m.

Mr McKay said all three dairy groups who sold their shares in DTS would remain customers.

"If you look globally, consumers around the world look at New Zealand and Australia as a source of safe and high-quality food, so it's important that we continue to work with these customers to increase that and build on that," he said.

image beaconimage beaconimage beacon