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Dairy deal to strenghten industry

Dairy deal to strenghten industry

Corrs Chambers Westgarth and Mallesons have advised dairy companies Mur­ray Goulburn Co-operative and French-owned Danone respectively on their recent joint venture. Named the Danone Murray…

Corrs Chambers Westgarth and Mallesons have advised dairy companies Mur­ray Goulburn Co-operative and French-owned Danone respectively on their recent joint venture.

Named the Danone Murray Goulburn, the joint venture will produce and market yoghurt and other fresh dairy products at Kiewa, in country North West Victoria, for distribution throughout Aus­tralia under Danone branding.Partner Jeremy McCarthy led the Corrs team which advised on the corporate and general com­mercial arrangements.

McCarthy commented: "We have worked closely with Murray Goulburn over the past two years on a range of projects and it was great to see this deal come to fruition. It was a pleasure to work on a deal which leverages Murray Goul­burn's and Danone's complementary strengths and will see the new joint venture enter the billion dollar Australian fresh dairy market."

The Mallesons legal team was led by mergers and acquisitions partner Joshua Cole, who advised on the overall transaction, corporate and general commercial aspects with solicitor Danny Li.Cole said that not only is the deal strategically important for Danone as a first step into the Aus­tralian market, but it is significant for the dairy in­dustry in regional Victoria as a whole.

"It will create up to 40 new jobs in Kiewa, with the potential for up to a total of 100 jobs in the next 10 years," Cole said.

"More broadly, the deal indicates a pick up in global demand for dairy products, which is good news for the local industry."

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