Troubled dairy company Bellamy's Australia has hit another roadblock in China as authorities there suspended the export licence of Camperdown Powder, a company it just acquired.
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The infant formula maker requested its shares be halted from trading on Friday to let it “determine the reasons and impact of the Camperdown's suspension of its CNCA license by the China authorities overnight,” referring to China's Certification and Accreditation Administration.
China is Bellamy's top export market, and the company's stock has been roiled by problems with sales and regulations there.
Bellamy's announced the acquisition of Camperdown Powder last month, and its export licence was a key plank in a turnaround plan.
The canning facility, in the Melbourne bayside suburb of Braeside, is a Certification and Accreditation Administration of the People's Republic of China-licensed site, an important hurdle for selling product into China.
“The acquisition will help build our brand credibility with trade partners and consumers. We believe this is an attractive commercial investment,” Bellamy's chief executive Andrew Cohen said when he announced the $28.5 million purchase of a 90 per cent stake in the canning facility last month and unveiled a $60.4 million capital raising to help fund the deal.
The stock will remain in trading halt until Tuesday, or resume trading earlier when the company has made an announcement on the impact of the decision.
This story first appeared on the Sydney Morning Herald.
