Fonterra divestment windfall for farmers but brings risks: ASB

The sale is a signal that Fonterra would like to remain commodity focused. (Image: Getty)

Fri, 24 Oct 2025

Fonterra Co-operative Group’s divestment of its consumer brands brings certain risks, and while the cash injection is a significant tailwind, it won’t be evenly spread throughout the wider economy, according to ASB Bank economists.“This prospective sale price is chunky, even for a dairy behemoth such as Fonterra,” ASB economist Wesley Tanuvasa said.Fonterra’s shareholders will vote on the proposal to sell the consumer brands to Lactalis for $4.22 billion on Oct 30. It plans to return $3.2b to farmer shareholders.If...

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