Fonterra chief executive Miles Hurrell announces the consumer brand sale last week. Photo: RNZ/Marika Khabazi
Fonterra says French dairy company Lactalis will pay another $375 million for its global consumer business, bringing the total to $4.22 billion.
The dairy co-operative said it had settled a dispute with Bega Cheese so Fonterra Australia's licences could be included in the sale of its consumer business to Lactalis announced last week.
The sale includes major brands such as Mainland and Anchor as well as processing operations in Australia and Sri Lanka.
It had been priced at $3.845b before the Bega Cheese settlement. Fonterra said it had agreed to pay Bega's legal costs to resolve the dispute.
A long-term agreement for Fonterra to sell milk and ingredients to Lactalis was part of the deal announced last week.
"As the world's largest dairy company, Lactalis has the scale required to take these brands and businesses to the next level," Fonterra chief executive Miles Hurrell said at the time.
"Fonterra farmers will continue to benefit from their success, with Lactalis to become one of our most significant Ingredients customers."
Lactalis chief executive Emmanuel Besnier said the consumer businesses would strengthen its growth strategy across Oceania, Southeast Asia and the Middle East.
"Combining the Fonterra consumer business operations and market leading brands with our existing footprint in Australia and Asia will allow Lactalis to further grow its position in key markets," Besnier said.
Fonterra's global Consumer business, excluding Greater China, and its consumer brands, as well as the integrated Foodservice and Ingredients businesses in Oceania and Sri Lanka, and Foodservice business in the Middle East and Africa Foodservice business, were part of the sale.
The deal was expected to settle in the first half of 2026, subject to a number of conditions, including regulatory and shareholder approvals.
Fonterra said shareholders will be asked to approve the deal at special meeting to be held in late October or early November.
