Fonterra will sell its global consumer business to French dairy giant Lactalis for NZ$3.845bn(€1.93bn). The sale, which will be subject to both regulatory approval and farmer shareholder approval, is expected to complete in the first half of next year.

Shares in Fonterra which trade on the New Zealand stock exchange rallied 20% on the announcement of the sale.

Fonterra announced in May 2024 that it intended to sell its global consumer business as part of the shift towards becoming a global business-to-business supplier of dairy ingredients. As well as major brands such as Anchor, the divestment will include manufacturing sites in Australia and New Zealand.

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The company had taken a twin-track approach to the sale, both looking for a buyer and examining whether the consumer business could be sold to investors through a stock-market floatation.

Lactalis, already the world’s largest dairy company by revenue, had become the front-runner to close in recent months. In May of this year the company receiver informal merger clearance from Australian regulators for the deal.

Lactalis is a privately held company controlled by the Besnier family. 55-year-old CEO and majority shareholder Emmanuel Besnier is the 67th richest person in the world, with a net worth of over €25bn, according to Forbes.