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Lactalis Completes $4.22 Billion Acquisition of Fonterra’s Consumer Brands
Table of Contents
Updated August 26, 2025, 17:57:19
deal Completion and Total Value
French dairy giant Lactalis is set to pay Fonterra an additional $375 million, bringing the total sale value of its global consumer business to $4.22 billion New Zealand dollars (approximately $2.63 billion USD as of August 26, 2025). This final payment resolves a licensing dispute and includes previously excluded assets.
The initial announcement of the sale, made on August 22, 2025, detailed the acquisition of major brands like Anchor and Mainland,but the inclusion of licenses held by Bega Cheese in Australia was contingent on a resolution.
Resolution of the Bega Cheese Licensing Dispute
A key component of finalizing the deal was resolving a licensing dispute with Bega Cheese Limited. Fonterra had previously held licenses allowing it to manufacture and sell certain products under the Bega brand in Australia. The settlement ensures these licenses will be included in the divestment to Lactalis.
According to a fonterra statement released August 26,2025,the inclusion of these licenses simplifies the transaction and provides greater value to lactalis.
Fonterra’s Strategic Shift
The sale of its consumer businesses marks a significant strategic shift for Fonterra, New Zealand’s largest company. Fonterra intends to focus its resources on its core strengths: ingredients, foodservice, and specialized nutrition. This move is part of a broader effort to improve profitability and reduce debt.
In November 2023, Fonterra announced a strategic refocus, outlining plans to streamline its operations and prioritize higher-value products. The sale of the consumer brands is a direct result of this strategy.
Fonterra’s CEO, Miles Hurrell, stated in the August 26th press release that the completion of the sale allows the company to “invest in our long-term growth areas.”
Lactalis’s Expanding Global Footprint
For Lactalis, the acquisition considerably expands its presence in the global dairy market, particularly in Australia and New Zealand. Lactalis is already a major player in europe and North america.
The addition of brands like Anchor and Mainland provides Lactalis with a strong portfolio of well-established consumer brands and a robust distribution network. Anchor, in particular, is a household name in New Zealand and a significant exporter.
According to Lactalis’s corporate website, the company operates in over 90 countries and employs over 85,000 people.
