Synlait Milk said no takeover discussions are taking place with Fonterra or The a2 Milk Company, pushing back against a report that the two dairy groups were exploring a joint bid to take the New Zealand-listed processor private.

The denial follows a report in The Australian that Fonterra and a2 Milk were considering a joint take-private transaction for Synlait, with a2 Milk potentially working with Fonterra as a funding partner. Synlait has historically had a close commercial relationship with a2 Milk. The company previously held exclusive manufacturing rights for some of a2 Milk’s infant formula products, including the China-label range.

a2 Milk is a significant Synlait shareholder. It currently holds about 19.8% of the company after participating in Synlait’s 2024 recapitalisation, while Bright Dairy increased its stake to 65.25%.