What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
The proposal, for less than a full merger, envisaged a merged governance body and some joint management systems with Lincoln maintaining its own name.
But it appears that neither institution particularly wanted it to go ahead.
In a letter to the universities last month, Education Minister Chris Hipkins said the cost of the proposal outweighed its potential benefit.
“It has also become apparent that neither Canterbury nor Lincoln fully supports the proposal submitted,” he said.
In a joint statement, the universities welcomed the minister’s decision and said they would benefit as proposed by working together.
“Current examples include the Children’s University Canterbury Partnership, joint academic programmes and discussions on postgraduate collaboration.”
A joint working group now set up will better position New Zealand’s land based sector to contribute to a sustainable economy and environmental sustainability via world class teaching and research, they said. – Nigel Malthus
