Friday, December 24, 2010

This Makes More Sense

Chinese interests are seeking to take a 50.01% interest in PGG Wrightsons.

Adolf expects the bid, unlike the ridiculous and shambolic bid for Crafar Farms, will be successful.
The bidders are Agria Corporation, already a 19 per cent shareholder in PGG Wrightson, and New Hope Group, one of China's biggest agribusiness companies.

Agria chief executive Tao Xie, a PGG Wrightson director, said the two Chinese companies were seeking no more than 50.01 per cent of Wrightsons and would form a joint venture to make the bid........

.........Agria, a New York-listed, China-based agricultural investment company, bought into PGG Wrightson last year.

Its bid partner New Hope is not well known in New Zealand but is a major producer of feed as well as meat, eggs and dairy products.

There is nothing strategic about a piss ant once was dominant farm services company which is remembered by four generations of farming families for the way it screwed its customers when times were tough. Therefore it is difficult to see what damage or downside for New Zealand there might be from such foreign investment.

On the other hand, control of a significant part of our milk production and processing industry by overseas interests whose reputation for quality control is akin to the SlackCaps' reputation for winning had the potential to cause serious long term damage to our biggest export earner. That's the real reason the Crafar Farms bid was denied. The inept dolt fronting the bid simply gave the excuse for the decision.

Good luck PGG Wrightsons. You'll need plenty of it.


kevin said...

The Aussies are shipping 3000 cows a month to the dairy farming area in China...

Adolf Fiinkensein said...

Good on them. It's not too long ago that NZ was doing much the same. Let them establish their own brand and international reputation which they can wreck without tarnishing ours.

Tinman said...

NZ regulation and domestic laws don't apply to foreign owned companies?

Adolf Fiinkensein said...

Tinman, to which particular regulations and laws do you refer?

What regulations and laws force Fonterra to maintain it's quality standards?