2 Sep 2014

Danone cleared to buy NZ formula firm

11:20 am on 2 September 2014

French food company Danone has been cleared to buy New Zealand infant formula manufacturer Sutton Group.

The Overseas Investment Office granted Danone consent to buy the assets of the Sutton Group so it can process raw milk into formula, and package the product in cans for sale into the Asia-Pacific region.

The price has been withheld under the Official Information Act.

Danone had a supply contract with Fonterra but stopped it and sued the co-operative for compensation after the recall of formula products during last year's botulism scare. That legal dispute is continuing.

In another decision, the Overseas Investment Office has given approval to Chinese company Gold International Holdings to buy land and at processing business from the Taranaki Abattoir Company in Stratford. Gold International had already been an investor in the abattoir.