Fonterra’s farmer shareholders have approved the co-operative’s sale of its Mainland Group business to Lactalis for $4.22 billion.
The agreement was reached this morning [30 October 2025] with 88.47 per cent of the total farmer votes cast in favour of the divestment.
Fonterra Chairman, Peter McBride said the Board and management team were encouraged by the level of engagement from farmer shareholders in the lead up to the vote.
“We’ve been pleased to see so many farmers joining in the discussions since the start of this process in May last year when we first announced the decision to explore divestment options, and especially over the past month or so when the full details have been available,” he said.
“It helps to demonstrate one of the key things that sets us apart from most other processors – our farmers have a direct say in the future of their co-operative, and they’ve made the most of that opportunity.
“We’re pleased to have received a strong mandate, with 88.47 per cent of the total farmer votes cast in support of the recommendation and 80.59 per cent participation based on milk solids voted.
“We want to thank all farmer shareholders who voted.”
McBride said the decision to divest the Mainland Group businesses is significant, and one the Board did not take lightly.
“We have examined the strategic context we operate in, our strengths and how as a co-op we create value for our farmer owners,” he said.
“The divestment will usher in an exciting new phase for the co-op. We will be able to focus Fonterra’s energy and efforts on where we do our best work.
“We will have a simplified and more focused business, the value of which cannot be overstated.”
The threshold required to approve the sale was for more than 50 per cent of the votes from those entitled to vote (based on share-backed kgMS) and who voted to be in favour of the proposal.
Completion of the divestment remains subject to securing certain regulatory approvals and the separation of Mainland Group business from Fonterra.
Both are well underway.
Fonterra expects the transaction to complete in the first half of 2026, subject to these steps being completed.
In other news, Western Australian mining company, MLG Oz, has appointed Mark Hatfield to the role of acting CEO, effective immediately.
