Fonterra Co-operative Group has agreed to divest its Consumer and associated businesses to Lactalis for a total of $4.22 billion, including the resolution of legal disputes over Bega Cheese licences.

Information on the Target

Fonterra Co-operative Group Limited is a leading dairy exporter based in New Zealand, known for its expansive portfolio in dairy production and marketing. The company aims to serve both local and international markets with high-quality dairy products while maintaining its commitment to sustainability and innovation within the industry. Recently, Fonterra has entered into a divestment agreement with Lactalis, a global dairy giant, to sell its Consumer and associated businesses.

This divestment comes with a total valuation of $4.22 billion, which includes the sale of the Bega licences for $375 million. The resolution of legal disputes with Bega Cheese Limited has paved the way for this deal, marking a significant strategic move for Fonterra in refocusing its business operations for heightened efficiency and growth.

Industry Overview in New Zealand

The dairy industry in New Zealand serves as a cornerstone of the nation's economy, contributing significantly to its export revenue. The country is renowned for its high-quality milk production an