French dairy giant Lactalis is set to pay Fonterra another $375 million for its global consumer business – which includes brands like Mainland and Anchor – bringing the total sale value to $4.22 billion.
It comes after Fonterra said it had resolved a licence dispute with Bega Cheese in Australia.
The settlement means Bega licences held by Fonterra’s Australia business will be included in the divestment.
On Friday, it was announced Lactalis would purchase major brands from Fonterra, such as Anchor and Mainland, but the Bega licences weren’t included at the time due to the dispute.
Prior to the dispute being resolved, the sale price was $3.845 billion. It’s now $4.22 billion.
As part of the agreement, Fonterra said it would pay Bega’s legal costs.
After the sale, Fonterra would continue to supply milk and other products to the divested businesses, meaning New Zealand farmers’ milk would still be found in dairy brands including Anchor and Mainland.
Fonterra first announced its plans to sell off some of its consumer brands in 2024, and described it as the “most dramatic major structural change” in the history of the business.
Fonterra chief executive Miles Hurrell said last week Lactalis, as the world’s largest dairy company, had “the scale required to take these businesses to the next level”.
“Fonterra farmers will continue to benefit from their success, with Lactalis to become one of our most significant ingredients customers.”
Fonterra expected the sale to be completed in the first half of 2026, after shareholder and regulatory approvals expected in October or November.
The sale comprises Fonterra’s global Consumer business (excluding Greater China) and Consumer brands; the integrated Foodservice and Ingredients businesses in Oceania and Sri Lanka; and the Middle East and Africa Foodservice business.
