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Fonterra Farmers Approve NZ$4.2 Billion Sale of Consumer Brands to Lactalis

Regulatory reviews plus separation work will decide whether the buyer takes control in early 2026.

Overview

  • Farmer-owners voted 88.5% in favour at a virtual meeting to divest Fonterra’s global consumer and associated businesses to Lactalis.
  • The transaction totals NZ$4.2 billion, including NZ$375 million for Bega Cheese licences, with completion targeted for the first half of 2026 pending approvals and operational separation.
  • Iconic New Zealand brands including Anchor, Mainland and Kāpiti would transfer to Lactalis under the deal terms.
  • The agreement includes multi‑year contracts for Fonterra to supply Lactalis with ingredients, subject to concerns raised about potential future termination rights.
  • Fonterra leadership says the sale will refocus the co‑op on advanced ingredients and food service, with about 7% of milk projected to be sold to Lactalis.