Gina Rinehart invests $500 million in baby formula company a week before the FTA announced.

[Gough]

http://www.smh.com.au/business/chin...hts-in-baby-formula-push-20141114-11mg4s.html

Gina Rinehart, the Australian billionaire who built her fortune on iron ore, is planning a $500 million investment to supply infant formula to a Chinese market forecast to almost double over three years.

Hope Dairies, controlled by Rinehart's closely held Hancock Prospecting Ltd., is seeking to acquire about 5000 hectares of farmland in Queensland state and is targeting first production in the second half of 2016, according to co-investor and director Dave Garcia.

The move comes as Australian miners including Fortescue Metals Group's founder expand into food production to tap rising demand from Asia's middle classes. It positions Rinehart, the richest woman in Asia, to compete in an infant formula market in China forecast to swell after the world's most populous nation loosened its one-child policy last year.


Read more: http://www.smh.com.au/business/chin...rmula-push-20141114-11mg4s.html#ixzz3JNkX1xgl

Does she have the numbers for next weeks lotto as well? It seems extraordinarily coincidental that this investment is made when it was. Given that we haven't seen the details of the FTA, why does it appear that a friend of the Liberal Party has seen some details in advance and has been able to invest accordingly. It's interesting to see Twiggy doing similar.

 

[mottrain]

I would have too. If the fta failed financially it still would have been a good investment. It isworth taking three can s with you when you go given how easy it is to offload on arrival for $$$ over purchase price.

 

[Xsess]

So what?

 

[Maggie5]

Insider trading?

 

[mottrain]

Insider trading?

No because there is no benefit from stocks. Also it says at the very start of the article no action has been taken yet ie she has not made the investment.

 

[Old_Man_James]

Not sure about this. Anyone that knows whats happening to the infant formula market could see that this investment would be a slam dunk. Even I was considering investing in baby formula when i heard about was happening at a local supermarket a good 18 months ago.

The 'grey' market for baby formula is ridiculous. I heard of this story from a local supermarket that was selling all its baby formula to students from china that would take it back home to sell... The manager decided to push his luck by ordering 5 pallets of formula... Word got out that this store had as much formula as you wanted... Time it took to sell all 5 pallets.... 1 day.

Did some research and found that after the scare about melamine contamination in baby formula, 1 can of the stuff could get anywhere from $50-90, so you can see why so many people were wanting to take the stuff back to china. An easy $20 per can. Part of the reason why it would get so much is that the people that had the official distribution rights to aussie/NZ formula were marking up to extortion levels, hence why the massive grey market existing for students etc. to send back.

 

[scon]

One of the major attractions our products have for the Chinese is food security.

 

[rodney hoo]

Not sure about this. Anyone that knows whats happening to the infant formula market could see that this investment would be a slam dunk. Even I was considering investing in baby formula when i heard about was happening at a local supermarket a good 18 months ago.

The 'grey' market for baby formula is ridiculous. I heard of this story from a local supermarket that was selling all its baby formula to students from china that would take it back home to sell... The manager decided to push his luck by ordering 5 pallets of formula... Word got out that this store had as much formula as you wanted... Time it took to sell all 5 pallets.... 1 day.

Did some research and found that after the scare about melamine contamination in baby formula, 1 can of the stuff could get anywhere from $50-90, so you can see why so many people were wanting to take the stuff back to china. An easy $20 per can. Part of the reason why it would get so much is that the people that had the official distribution rights to aussie/NZ formula were marking up to extortion levels, hence why the massive grey market existing for students etc. to send back.

You considered investing in about 18 months ago is a lot different to investing 500 mill a week before the deal goes down. I like a bit of that luck.

 

[mottrain]

You considered investing in about 18 months ago is a lot different to investing 500 mill a week before the deal goes down. I like a bit of that luck.

Care to point out the part in the article where it says she has already invested

 

[clogged]

I thought it was so she could get her hands on the formula. Or the babies.

 

[RUNVS]

I thought it was so she could get her hands on the formula. Or the babies.

Well Fat Bastard ate babies.

 

[Lester Burnham]

Socialism.
You have two cows.
The state imposes a milk tax.
You sell one cow at a loss and eat the other. You go to the government for money.

Capitalism.
You have two cows.
You sell one and buy a bull.
Your herd multiplies, you sell the milk to China, and the economy grows.

Did anyone notice that Rinehart's planned operation would employ about 400 people? But yeah, Gina is clearly a dud and is wealthy because she inherited a fortune.

 

[clogged]

Socialism.
You have two cows.
The state imposes a milk tax.
You sell one cow at a loss and eat the other. You go to the government for money.

Capitalism.
You have two cows.
You sell one and buy a bull.
Your herd multiplies, you sell the milk to China, and the economy grows.

Did anyone notice that Rinehart's planned operation would employ about 400 people? But yeah, Gina is clearly a dud and is wealthy because she inherited a fortune.

I think the reason behind the thread eludes you.

 

[madmug]

Insider trading?

Good grounds for a royal commission into the illegal activities within the LNP. Insider trading is corrupt & a scourge on business in this country. The RC will be extended to last long enough for damning evidence to emerge just before the following election after.

Funny coincidence that would be

 

[Gough]

Crony capitalism.

 

[Slax]

Smart business woman.

Negotiations on an FTA with China were started by Labor not Abbott (he's just there for the photos) and anyone in industry would've known that it was about to be signed. It was also always going to be beneficial to the Australian food sector. Combine this with the health scares that have gone through china in recent years, especially involving baby formula and you can see it is a smart move.

 

[Pie eyed]

I thought it was so she could get her hands on the formula. Or the babies.

Infant mine workers will all fail the english test....

 

[The Coup]

Infant formula in Kenya, look it up.

Nestle are a bunch of ******* arseholes man.

 

[Herne Hill Hammer]

Perhaps she got her info re the fta from China rather than Australia.

I'd assume she have dealings over time with fairly high ranking Chinese officials.

 

[Lebbo73]

http://www.smh.com.au/business/chin...hts-in-baby-formula-push-20141114-11mg4s.html

Does she have the numbers for next weeks lotto as well? It seems extraordinarily coincidental that this investment is made when it was. Given that we haven't seen the details of the FTA, why does it appear that a friend of the Liberal Party has seen some details in advance and has been able to invest accordingly. It's interesting to see Twiggy doing similar.

We have all known for about a month that a FTA with China would probably happen. So maybe her supposed investment was just commonsense. This doesn't mean you can openly slander someone.

 

[Power Raid]

http://www.smh.com.au/business/chin...hts-in-baby-formula-push-20141114-11mg4s.html

Does she have the numbers for next weeks lotto as well? It seems extraordinarily coincidental that this investment is made when it was. Given that we haven't seen the details of the FTA, why does it appear that a friend of the Liberal Party has seen some details in advance and has been able to invest accordingly. It's interesting to see Twiggy doing similar.

She has been looking at an acquisition in this space for 6-12 months

 

[BlueHeeler25]

Smart business woman.

Negotiations on an FTA with China were started by Labor not Abbott (he's just there for the photos) and anyone in industry would've known that it was about to be signed. It was also always going to be beneficial to the Australian food sector. Combine this with the health scares that have gone through china in recent years, especially involving baby formula and you can see it is a smart move.

Ah no - fact check.

Negotiations started under the Howard Govt. This started back in 2004. Labor then took over and nothing happened. Libs took over with a goal to finish it by end of this year - which they have done. That could be because they are awesome and Labor are useless OR because Libs have given away the farm for nothing good in return (i.e. they bent over). Won't know until we see the text and consider it in 10 years time. But suggesting Abbott is just there for the photo op is garbage.

As for the topic - the Libs said by end of 2014 they would have FTAs with China, Japan and South Korean. Japan and South Korea have been done. We knew for at least 6 months the Chinese President would address Parliament after the G20 - it doesn't take a brain surgeon to work out that it was likely the agreement would be signed around now. New Zealand signed a similar agreement years ago (ironically they could get it done but not our Labor Party) so it doesn't again take a lot of brains to work out the likely terms with China.

So no Gina hasn't bought this because of some massive insider conspiracy. She bought it because she (like many others in the business community) know we are going to strengthen ties with China and also that agribusiness is a massive money maker over the next two decades. Just because the OP clearly has no idea about business or foreign relations doesn't mean the richest person in the country also has no idea (in fact most average business grads could see this deal as a goer - would just need a lazy $500 million).

 

[BlueHeeler25]

We have all known for about a month that a FTA with China would probably happen. So maybe her supposed investment was just commonsense. This doesn't mean you can openly slander someone.

Totally agree. The OP is nothing but baseless slander. Can the mods please delete this thread?

Don't be surprised if Corrs (her litigation lawyers) write Gough a nasty letter - they have form.

 

[Slax]

Negotiations started under the Howard Govt. This started back in 2004. Labor then took over and nothing happened. Libs took over with a goal to finish it by end of this year - which they have done. That could be because they are awesome and Labor are useless OR because Libs have given away the farm for nothing good in return (i.e. they bent over). Won't know until we see the text and consider it in 10 years time. But suggesting Abbott is just there for the photo op is garbage.

Any PM signing an FTA is only doing it as a photo op.

Abbott would of been aware of the negotiations but would of had zero input into them and what was or wasn't on the table. he would've of been briefed on the final deal before publicly releasing a statement and then signed it for the press. Politicians whilst pretending they get involved in bureaucracy don't and leave things like this to the public service.

 

[Power Raid]

I think your right slax