Fonterra has completed the sale of its global consumer and associated business, Mainland Group, to Lactalis.
The sale comprises Fonterra’s global consumer business and consumer brands, excluding the consumer business in Greater China where Fonterra will continue to own the Anchor brand; the integrated foodservice and ingredients business in Oceania; the integrated foodservice business in Sri Lanka; and the Middle East and Africa foodservice business.
The sale was first approved by Fonterra’s farmer shareholders last October, with 88.47 per cent of the total farmer votes cast in favour of the divestment.
Fonterra Chairman, Peter McBride, says the completion is a significant milestone which sets the co-operative up for the future.
“With the divestment complete, Fonterra can return capital to its owners and focus on growing further through its core business as a New Zealand farmer-owned global B2B dairy provider,” he said.
As previously advised, Fonterra will return $3.2 billion NZD (approx. $2.7 billion AUD) of divestment proceeds to farmer shareholders and unit holders via a $2.00 NZD ($1.66 AUD) per share capital return.
“The completion of the sale also signals the start of our long-term partnership with Lactalis,” said Fonterra CEO, Miles Hurrell.
“Lactalis becomes one of our most significant Ingredients customers, as we continue to supply milk and other products to the divested businesses.
“Through our high performing ingredients and foodservice businesses, we sell innovative dairy products to customers globally under our NZMP and Anchor Food Professionals brands.
“We can now focus our resources, R&D spend and farmers’ capital on continuing to grow these businesses, which generate the greatest return for farmers’ milk.”
In other news, Symons Group is partnering with KiwiRail to launch a new regional freight hub in Taranaki, New Zealand.
.jpg)
.png){kind=logo}
