US EditionPublished • loading... • Updated
Farmers Give Green Light to Fonterra's Sale of Consumer Business to Lactalis
Farmers approved the NZ$4.2 billion sale with 88.5% voting in favor, despite warnings of long-term risks to iconic dairy brands from New Zealand's Foreign Minister.
- On Thursday, farmers who own New Zealand dairy cooperative Fonterra voted to sell its consumer business, including Anchor and Mainland, to French group Lactalis for NZ$4.2 billion.
- Following a strategic review led by Miles Hurrell, the board decided to simplify Fonterra by focusing on higher-return Ingredients and Foodservice after loss-making years and overseas write-offs.
- In a virtual meeting, final votes showed 88.5 percent in favour, with $3.2b returned to farmer shareholders and about $1b retained for reinvestment.
- Foreign Minister Winston Peters blasted the decision, warning Fonterra risks losing long-term security and control of iconic brands Anchor, Mainland, and Kapiti to a foreign firm.
- The sale is structured with long-term supply terms but allows Lactalis to begin a three-year notice leading to six-year exit window, and completion is expected in the first half of next year pending regulatory approvals and consumer-operations separation.
Insights by Ground AI
12 Articles
12 Articles
Fonterra sale not sugar, but still sweet
Reading Time: 2 minutes Fonterra’s sale of its consumer and Mainland businesses to Lactalis is not a “short-sighted sugar hit” as New Zealand First leader Winston Peters claims, but it will give shareholder Andrew McGiven an unexpected cash injection into his Te Aroha farm business. It will provide a nest egg if dairy prices fall or if on farm costs rise like they have done in the past, he said. Farmer-shareholders voted overwhelmingly in favou…
Coverage Details
Total News Sources12
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
Factuality
To view factuality data please Upgrade to Premium
