Bega Cheese, the owner of Tatura Milk, is planning to buy out the Peanut Company of Australia.
The dairy company has a licence to produce peanut butter spread at its Port Melbourne factory, and wants to secure its supply and further grow Australian peanut production.
Earlier in the year Bega announced it had purchased the Vegemite brand, to bring the iconic Australian label back into Australia.
Peanut Company chairman Ian Langdon said the PCA Board unanimously recommended PCA shareholders accept the $12million bid from Bega, subject to an independent expert’s opinion and in the absence of a superior proposal being received by PCA.
He said it assured continued Australian ownership of the company.
Bega Cheese executive chairman Barry Irvin said the acquisition would help grow the supply of Australian grown peanuts for the manufacture of peanut butter at the Port Melbourne factory and supply to other PCA customers.
‘‘We have plans to increase the domestic supply of peanuts by working with farmers to expand peanut plantings and production,’’ Mr Irvin said.
‘‘We have a long history of working with farmer suppliers in the dairy industry and we will apply that experience to the peanut industry.’’
The Peanut Company is located in Kingaroy, Queensland.