If I have to make a bet, I'll bet on NZ New Milk. I think it would be more logical and better fit for a2 than Yashili. NZNM is pretty much is a canning and packaging company and this is what a2 needs. Yashili has broader production range including bulk powder which would overlap with MVM, plus DB stated many times they are not planning to move to goat milk or any categories beyond closely related to what a2 has now. But that is least of the issues. Usually it's not about what you want to buy but rather who wants to sell. I doubt Chinese are interested in selling Yashili. NZNM on another hand is Lactalis subsidiary which they acquired just before covid and does not seem fit with their strategy in the region at the moment. So, would be a good candidate for them to unload it. Btw, Platinium 4 is canned by NZNM not Yashili. Yashili produce a2 Gold. NZNM would have more SAMR slots as you only allowed 9 products per factory. Also, Mengniu is not a china state owned, however state is a biggest shareholder. Regardless of all the above and whoever a2 will acquire I think most here lost sight of the main point. a2 has started to deploy capital. In fact it came sooner than I expected. Which means another buyback or other form of distribution for shareholders is step closer. Much closer.
A2M Price at posting:
$6.25 Sentiment: None Disclosure: Held
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