Emmi AG's Chilean unit, Lacteos Surlat SA, will merge with its rival Cia Agricola y Lechera Quillayes de Pete, or Quillayes, to form a new dairy company in the Chilean market, according to an Aug. 30 announcement.
Financial terms of the deal were not disclosed.
Spain's Kaiku Corporación Alimentaria SL, the parent of Surlat, which is 73.5%-owned by Emmi, will hold a majority stake of 51.5% in the merged entity called Quillayes Surlat. Emmi will have a 37.8% stake in the new company following the deal.
Surlat's key segments are UHT milk and other dairy products including lactose-free products, while Quillayes produces cheese, yogurt, butter and cream. Surlat generated CHF100 million in net sales in 2018, while Quillayes recorded CHF70 million.
Switzerland-based Emmi said the deal expands its presence in Chile as Quillayes Surlat is expected to be the fourth-biggest player in the local dairy market. The move will also boost Emmi's sales in Chile to about CHF170 million.
The deal is subject to approval by Chilean competition authorities.
