The Chinese Investment Corp. (CIC) in partnership with New Zealand dairy giant Fonterra is proposing to buy Tasmania-based dairy business Van Diemen’s Land (VDL) for US$200 million. VDL is one of the oldest companies in Australia, being founded in 1825. It is owned by the investment management arm of the New Plymouth District Council in New Zealand and it controls 25 dairy farms and 30,000 head of stock in the northwest of Tasmania. Under the partnership (which is believed to be a move on Fonterra’s part to repair relations with China after its recent contamination scare) the CIC would take 49% of VDL and Fonterra, 51%.
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