Fonterra Co-operative Group announced the sale of its global consumer and related businesses to French dairy giant Lactalis for NZ$3.845 billion ($2.24 billion), pushing its shares to a seven-year high. The stock jumped 17% in early trading to NZ$5.88.
The deal covers Fonterra’s consumer brands—including Mainland, Anchor, Kapiti, and Anlene—along with its Foodservice and Ingredients businesses in Oceania, Sri Lanka, the Middle East, and Africa. CEO Miles Hurrell said the company pursued both IPO and trade sale options but concluded that selling to Lactalis offered stronger value and synergies.
Competing interest had come from Japan’s Meiji, Canada’s Saputo, and U.S. private equity firm Warburg Pincus, though Lactalis ultimately prevailed. The price could increase by NZ$375 million if Bega licences in Australia are added. Lactalis Chairman Emmanuel Besnier said the acquisition would enhance the company’s position across Asia and Australia.
The transaction is subject to shareholder and regulatory approval, with a vote scheduled in late October. If approved, the deal is expected to close in the first half of 2026. Fonterra plans a tax-free capital return of NZ$2 per share and will focus on expanding its higher-margin ingredients business.
Source: Reuters
