Fonterra, the New Zealand-based co-operative, has announced that it is on the cusp of finalising the sale of its Mainland consumer business. As of now, the deal has met all the necessary conditions and is set to conclude within the current month.
Fonterra has assured that all mandatory regulatory approvals have been obtained, paving the way for the successful separation of the business. The company initially disclosed plans to sell its global consumer and associated businesses, collectively known as the Mainland Group, to French dairy giant Lactalis in August of last year.
The Mainland Group encompasses a range of popular brands, including Mainland, Anchor, Perfect Italiano, and Anmum.
Originally, the deal was valued at NZ$3.845 billion, but an agreement with the Bega Group to incorporate the Bega licences into the divestment process led to an increase in the price to $4.22 billion.
The proposal met with approval from Fonterra’s farmer shareholders, who voted in favor of the transaction last October.
“With all terms of the sale fulfilled, Fonterra and Lactalis are set to finalise the transaction,” stated Fonterra. It anticipates the completion of the transaction by the end of the current month, with the record date for the capital return expected on April 9 and the payment date slated for April 14.
What is the Mainland Group?
The Mainland Group refers to Fonterra’s global consumer and associated businesses. It includes brands such as Mainland, Anchor, Perfect Italiano, and Anmum.
What led to the increase in the deal price from NZ$3.845 billion to $4.22 billion?
The price of the deal was increased following an agreement with the Bega Group to include the Bega licences in the divestment, leading to a rise in the overall value of the transaction.
When is the transaction expected to be finalised?
Fonterra anticipates the completion of the transaction by the end of the current month. The record date for the capital return is expected to be April 9, followed by the payment date on April 14.
