New Zealand's a2 Milk gets China approval for infant formula rebranding, shares jump (updated)

A2 Milk

Mon 01:19

Updates with share moves

    June 22 (Reuters) - New Zealand's a2 Milk ATM.NZ said on Monday it has received approval in China to convert two infant milk formula registrations tied to its recently acquired Pokeno facility into its own brands, sending its shares to a near two-month high.
Acquisition of the Pokeno facility, which the infant milk formula maker completed in early September of last year, had included two China-label infant milk formula product registrations that the company planned to convert to its own brand.
Shares of a2 Milk rose as much as 11.1% to NZ$9.01, hitting their highest since April 28.
The milk producer said approval from China's State Administration for Market Regulation means it no longer has the right to unwind the acquisition of the Pokeno facility.
a2 Milk expects to launch the new products later this year, it added.
CEO David Bortolussi said the approval was a significant step in the company's China growth strategy.
The board will soon meet to consider an NZ$300 million  ($172.20 million) special dividend first announced in August 2025, it said. It had conditioned the dividend payout on regulatory approval for the product registrations.
($1 = 1.7422 New Zealand dollars)

 (Reporting by Shruti Agarwal and Shivangi Lahiri in Bengaluru; Editing by Edmund Klamann and Subhranshu Sahu)
 ((Shruti.Agarwal@thomsonreuters.com;))