Fonterra seeks strong farmer mandate for sale
Fonterra chair Peter McBride expects a strong mandate from farmers shareholders for the proposed sale of its consumer and related businesses to Lactalis for $3.8 billion.
Fonterra says its ongoing legal battle with Australian processor Bega Cheese won’t change its divestment plans.
The co-operative also plans to appeal a ruling by the New South Wales Supreme Court on a case around Fonterra’s proposed divestment plan and its impact on a licencing agreement with Bega.
Fonterra argued that provisions of its licensing agreement with Bega are not impacted by the proposed divestment process. However, Bega, a potential bidder for Fonterra’s Oceania business, opposed Fonterra’s submission.
Bega Cheese issued a statement saying the NSW Supreme Court dismissed Fonterra’s proceedings and ordered the co-op to pay costs and it welcomed the decision.
In a statement, Fonterra’s managing director mergers & acquisitions and strategic divestments, Mike Cronin, says that the court “stated it is unable to make a determination at this stage, as there is not yet enough certainty about the outcome of the divestment process”.
“Our view has not changed as a result of the court decision and Fonterra intends to appeal this decision in the coming weeks.
“This does not change our divestment plans, and we continue to pursue both a trade sale and initial public offering (IPO) as potential divestment options.”
Fonterra’s Oceania business, which includes iconic Anchor, Mainland and Western Star brands, is attracting bidders. French company Lactalis and Bega Cheese are among them.
Bega executive chairman Barry Irvin says the company will always fight to protect its rights.
“We hope to work constructively with Fonterra Group on the sale of its Oceania business of which Bega Group is a natural acquirer and remains very interested in.”
Fonterra’s divestment plan includes either the sale of float of Fonterra Oceania and Fonterra Sri Lanka, which has 17 manufacturing sites around the world, including three in New Zealand.
Federated Farmers says the final report into banking competition is a significant step forward for rural New Zealand - and a vindication of the farming sector's concern.
Fonterra chair Peter McBride expects a strong mandate from farmers shareholders for the proposed sale of its consumer and related businesses to Lactalis for $3.8 billion.
Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.
The world’s largest milk company Lactalis has won the bid for Fonterra’s global consumer and associated businesses.
Fonterra has increased its 2024/25 forecast Farmgate Milk Price from $10/kgMS to $10.15/kgMS.
It took a stint at university to remind Otago dairy farmer Megan Morrison that being stuck in a classroom was not for her.
OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…
OPINION: Sydney has a $12 million milk disposal problem.