Fonterra farmers approve $4.22 bn consumer business sale

Fonterra farmer shareholders have approved the divestment of its global Consumer and associated businesses, including Mainland Group, to Lactalis for NZD4.22 billion. The decision was made at a virtual Special Meeting, with 88.47% of total farmer votes cast in support of the sale and an 80.59% participation rate based on milk solids voted.

The Co-operative aims to return NZD2 per share to shareholders and unit holders, equating to NZD3.2 billion, as a tax-free capital return once the sale is complete. This process will require a separate shareholder vote and is expected to proceed via a scheme of arrangement. More details on timing will be provided in early December.

The completion of the divestment remains subject to regulatory approvals and the separation of the Mainland Group business from Fonterra. The transaction is anticipated to conclude in the first half of the 2026 calendar year.