A2 Milk secures Chinese regulatory approval for label registration

The news: The State Administration for Market Regulation (SAMR) has approved a2 Milk’s transition of the two China-label infant milk formula (IMF) product registrations acquired in connection with the a2 Milk Facility to a2 branded products.

The context: The company said this marks the final step in a2MC’s acquisition of the a2 Pokeno facility, securing all necessary regulatory approvals, with the company confirming that it no longer has the right to unwind the transaction.

A2 Milk added that the board intends to declare a $300 million special, fully franked and unimputed special dividend following the completion of the required regulatory approvals. It also expects to launch the new products toward the end of the year.

What they said: “[The] SAMR approval supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture,” CEO David Bortolussi said.