Fonterra has received overwhelming support from its farmer shareholders to sell its Mainland Group to Lactalis for $4.22 billion, aiming to focus on its core business and enhance shareholder value.

Target Company Overview

Fonterra Co-operative Group Limited, a prominent dairy exporter based in New Zealand, has received approval from its farmer shareholders to proceed with the divestment of its global Consumer and associated businesses, specifically the Mainland Group. This strategic decision has been endorsed by 88.47% of the votes cast by the farmer shareholders, reflecting strong support for the sale to Lactalis, a leading French dairy company, for a total value of $4.22 billion. The voting process was conducted during a virtual Special Meeting, where Chairman Peter McBride expressed satisfaction with the engagement and participation of farmer shareholders throughout the decision-making process.

The move to divest represents a significant strategic shift for Fonterra as it aims to focus more effectively on its core business functions. With this divestment, Fonterra will streamline its operations, enabling the co-operative to harness its strengths and deliver heightened value to its farmers. The completion of the sale is dependent on regulatory approvals and the separation of the Mainland Group, which is currently underway and expected to finalize in the first half of the 2026 calendar year.

Industry Overview in New Zealand

The dairy industry is a vital sector in New Zealand, renowned for its high-quality products and strong export performance. As the world's largest exporter of dairy products, New Zealand benefits from vast pasturelands an