From Yahoo Finance: 2025-05-01 13:14:00

Global dairy giants Lactalis, Saputo, Meiji Holdings Co., and Warburg Pincus are interested in acquiring Fonterra’s consumer-facing assets in New Zealand. The cooperative announced plans to exit its consumer division last year, with the assets potentially fetching NZ$4bn. The disposal process is expected to take 12-18 months.

Fonterra’s consumer business accounted for 15% of milk solids and 19% of group operating earnings in the first half of its 2024 fiscal year. In March last year, group profit after tax rose 23% to NZ$674m. The co-op is now engaging with potential buyers for the consumer business, with some seeking regulatory approvals.

The latest first-half results for the Fonterra group in fiscal 2025 show an operating profit of NZ$1.11bn and profit after tax of NZ$729m. Lactalis, Saputo, Meiji, and Warburg Pincus have been contacted for comment on the speculation. Fonterra plans to rename the divested businesses as the Mainland Group, with new leadership appointments.

Assets up for divestment include the well-known Anchor butter brand, Mammoth flavoured milk drinks, De Winkel yogurts, Mainland, Kāpiti, Anlene, and others. Warburg Pincus declined to comment on the matter. Fonterra continues to progress the trade sale process for its consumer business, with potential purchasers seeking regulatory approvals.

Read more: Lactalis, Saputo among parties ‘eyeing up Fonterra’s up-for-sale dairy assets’