Fonterra, New Zealand’s biggest dairy co-operative, has announced it will sell its well-known consumer brands, including Anchor and Mainland, to French dairy company Lactalis for $3.8 billion.
The deal still needs approval from shareholders and regulators, which is expected later this year. If approved, the sale should be completed in the first half of 2026.
The decision marks one of the biggest changes in Fonterra’s history. By selling these businesses, Fonterra says it can return around $3.2 billion to its farmer shareholders, which works out to about $2 per share.
Chairman Peter McBride explained that the company had looked at several options, including selling shares on the stock market, but chose Lactalis because it offered the best long-term value. The sale also allows Fonterra to hand money back to farmers more quickly.
Chief executive Miles Hurrell said Lactalis, the world’s largest dairy company, has the ability to grow these brands even further. He added that Fonterra farmers would still benefit, since Lactalis will become one of their major customers.
The sale includes Fonterra’s consumer businesses in Oceania, Sri Lanka, the Middle East, and Africa, but not its operations in China. Before the sale is final, the brands and businesses must be separated from Fonterra, and no major problems must occur.
Fonterra’s current earnings forecast for 2025 will not change, and a new forecast for 2026 will be shared in September 2025.
