Fonterra spinoff's $3.2b capital return: New gear or crush debt?

Geoff Crawford farms in Northland. (Image: NZME)

Tue, 26 Aug 2025

A large amount of the capital earmarked to be returned from Fonterra Co-operative Group’s Mainland Group divestment could be heading for debt repayment.The long-awaited deal to sell off Fonterra’s consumer business was announced late last week, seeing a deal inked with French giant Lactalis for $3.845 billion – increasing to $4.22b should the Bega brand be included.Fonterra first flagged the prospect of a “significant” return when it updated its long-term strategy in September last year.But, almost immediately afte...

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