Fonterra sells consumer business to Lactalis for $3.845 billion

Fonterra has reached an agreement to sell its consumer and associated businesses to Lactalis for $3.845 billion.

The sale, which is subject to conditions including approval from Fonterra's farmer shareholders and regulatory approvals, includes Fonterra's global consumer business (excluding Greater China), integrated foodservice and ingredients businesses in Oceania and Sri Lanka, as well as the Middle East and Africa foodservice business.

Fonterra's chairman, Peter McBride, said the sale to Lactalis was the highest value option for the co-operative.

The transaction is expected to be completed in the first half of 2026, pending the satisfaction of the conditions.

Fonterra's earnings guidance for the 2025 financial year remains unchanged.