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Fonterra co-operative group farmers back sale of consumer business with over 88% support
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Friday, 07 November, 2025, 14 : 00 PM [IST]
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New Zealand
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In a significant move, the farmer-shareholders of New Zealand-based dairy co-operative Fonterra have overwhelmingly approved the sale of their global consumer and associated businesses, including the Mainland Group, to French dairy giant Groupe Lactalis for US $4.22 billion. A total of 88.47 % of the votes cast supported the divestment.
The virtual special meeting, held on October 30, saw 80.59 % participation based on milk solids among the farmer-shareholders.
Peter McBride, chairman of Fonterra, said the strong engagement from farmers reaffirmed the co-operative’s unique governance model where producers have a direct say in strategic decisions.
McBride noted, “The divestment will usher in an exciting new phase for the Co-op. We will be able to focus Fonterra’s energy and efforts on where we do our best work.”
Under the agreement, the completion of the deal is contingent on regulatory approvals and the formal separation of the Mainland Group business — both of which are in advanced stages. Fonterra expects the transaction to close in the first half of calendar 2026.
Post-transaction, Fonterra plans a tax-free capital return of US $2.00 per share/unit, equivalent to roughly US $3.2 billion, to its shareholders and units, subject to a further shareholder vote. More details on the timing and process for this return will be shared in early December.
This strategic shift underscores Fonterra’s intent to streamline its business and sharpen its focus on core dairy operations, leaving behind its global consumer brand segment in favour of better-aligned growth areas.
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