[3 August/Radio NZ]

The a2 Milk Company will buy an additional 8 percent share in Synlait Milk from Mitsui for $161.6 million. This will increase its share of Synlait to 17.4 percent in total. Synlait produces infant formula for A2 Milk, which was in demand in Australia and China. It had also helped drive the company’s profits and share price over the past two years. The two companies extended their cornerstone commercial agreement in July for the supply of infant formula and other dairy products. A2’s Managing Director, Jayne Hrdlicka, said the investment in Synlait was consistent with its commitment to long term supply arrangements with high quality partners. She added A2 Milk had no plans to buy any more of Synlait. The two companies were among the best market performers over the past year.