New Zealand Fonterra Co-operative Group Ltd has agreed to sell its global consumer and related business to a French dairy company Lactalis for $3.85 billion New Zealand dollars. This is reported in a press release from Fonterra.
The transaction, subject to all conditions, should be completed in the first half of calendar year 2026. As part of the agreement, Fonterra will continue to supply raw milk, dairy ingredients and products to the sold enterprises.
As part of the deal, Fonterra's global consumer business (excluding Greater China), consumer brands, integrated catering and ingredient manufacturing businesses will be sold. Oceania and Sri Lanka, as well as catering establishments in the Middle East and Africa.
In addition, Lactalis is negotiating the acquisition of Bega cheese production licenses owned by Fonterra's Australian division. As a result of this transaction, the total value of the company's assets may increase by $375 million to $4.22 billion. The inclusion of Bega licenses will be confirmed after the dispute with Bega Cheese Limited is resolved.
Fonterra shareholders will vote on the proposal recommended by the Board of Directors in late October or early November. The company Lactalis will need the approval of foreign investments in New Zealand, Australia, and other countries for asset sales. The Australian Competition and Consumer Commission had previously said it would not object to the proposed acquisition. The sale also depends on the separation of the business from Fonterra and the absence of adverse changes before the completion of the transaction.
Fonterra Co-operative Group Ltd is a New Zealand dairy company that was formed in 2001 by the merger of three New Zealand dairy industry organizations.: New Zealand Dairy Group, Kiwi Cooperative Dairies and New Zealand Dairy Board.
Groupe Lactalis S.A. is a French family—owned milk production business founded in 1933. Groupe Lactalis offers products from such iconic brands as Président, Galbani and Parmalat.
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
