Fonterra looks for right formula with Beingmate

After being bruised by its previous Chinese partnership with Sanlu, the New Zealand dairy group seeks a 20% stake in another mainland group.

New Zealand dairy group Fonterra on Wednesday became the latest foreign company to partner with a Chinese firm in an effort to crack the market.

Fonterra will launch a tender offer to buy a stake of up to 20% in infant formula maker Beingmate, worth NZ$615 million US$514 million.

While China is a big market, it is one where foreign companies have struggled to get the formula right and the big question is whether Fonterra can succeed after a past failed attempt.

The group previously held a 43% stake in Sanlu a state-owned Chinese dairy company that went bankrupt in 2008...

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