Fonterra Australia has entered into an agreement to sell its 36.02% stake in Dairy Technical Services (DTS) to a consortium that includes Bureau Veritas Singapore and AsureQuality.
The stake sale will result in Bureau Veritas Singapore and AsureQuality becoming the new owners of DTS, holding all the shares in the company. The transaction is subject to regulatory approvals and is expected to be completed by the end of May 2016.
The new owners of DTS will bring in their extensive international testing expertise to the Australian dairy and food industry. However, DTS will continue to provide testing services to Fonterra.
New Zealand state-owned-enterprise AssureQuality and French publicly listed company Bureau Veritas have reached an agreement to purchase DTS. Currently, AssureQuality owns 26.4% stake in DTS.
AsureQuality CEO John McKay feels that it is a strategic move for the company that would help in building its capacity and improving its service in line with the needs of its customers.
John McKay added: "DTS is the market leader in Australia, contracting with Australia's largest dairy processors and food companies, and this investment continues to strengthen our relationships with trans-Tasman customers.
"Following the acquisition, AsureQuality will have market leadership positions in both New Zealand and Australia, and this strengthens our credentials as a global expert in dairy testing.
"Bureau Veritas is a global leader in testing, inspection and certification and is looking to increase its interests in the food service business. Partnering with Bureau Veritas will strengthen both parties' capacity to help our clients meet the growing challenges of quality and safety in the food supply chain."
