Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
The 13.6% stake bought from Fundación Isabel Aninat takes the co-op’s stake in Prolesur to 99.9%.
Prolesur, based in southern Chile which sells most of its production to Soprole, a leading consumer branded dairy company in Chile and is 99.9% owned by Fonterra.
The remaining 0.1% of Prolesur’s shares are held by minority shareholders, which Fonterra will offer to purchase at the same price per share being paid to the Fundación for its shareholding.
Fonterra chief executive Africa, Middle East, Europe, North Asia and the Americas (AMENA) Kelvin Wickham says the acquisition allows Fonterra to simplify the interface between Prolesur and Soprole and take steps to better integrate the two businesses.
Both Prolesur and Soprole have faced challenging trading conditions in recent years.
“Having the two more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration,” says Wickham.
“It also allows us greater flexibility as we focus on realising the best value for the co-op from our businesses in Chile in line with our new strategy.”
Fonterra’s new strategy focuses on using mostly milk from its New Zealand farmer suppliers to supply dairy products around the world.
It is looking at streamlining overseas milk pools; China, Chile and Australia.
