Fonterra sells consumer businesses 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), as well as its integrated foodservice and ingredients businesses in Oceania and Sri Lanka, and the foodservice business in the Middle East and Africa.

Fonterra's chairman, Peter McBride, said the decision to sell was based on a strategic review and the belief that divesting the assets would allow the company to focus on its ingredients and foodservice businesses.

The sale is expected to be completed in the first half of 2026.

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