Synlait has NZ$1.66B market cap, Fonterra $7.15B and A2 $10.5B Fonterra's attitude was once that A2 milk was nothing more than a passing clever marketing fad. No more, with the tie up announced last year. Fonterra has a lot to offer ATM/A2M with it's global reach and supply. In its other supply partner Synlait, A2 has a 17% stake. Surely A2 have considered a strategic holding in Fonterra as well?? With $287M cash on hand at the end of 2018, I wouldn't be surprised to see some of this invested in Fonterra in the near future. And just like A2 Milk Infant Formula was a game changer for Synlait, watch A2 milk give a boost to Fonterra.
FSF Price at posting:
$4.26 Sentiment: Buy Disclosure: Held
