News Dairy
Fonterra fills cash with sale of Chilean subsidiary
Fonterra has sold Sopropole, the dairy division in Chile. Although the Chilean activities say they are 'good business' were, the New Zealand dairy cooperative wants to focus mainly on the valorization of milk produced on the home market.
The Chilean activities will be transferred to Gloria Foods, a consumer dairy producer from Peru that is active in several South American countries. They pay the equivalent of just under €630 million for this, which will be paid in several phases. This will fill Fonterra's cash considerably, although the amount is gross.
The sale does not come out of the blue and was previously announced by CEO Miles Hurrel. Fonterra is pleased that a buyer has been found. The Chilean competition authorities still have to approve the deal.
It is not the first time that Fonterra divested companies. In 2020, Chinese dairy farms were still being sold. A year earlier, Fonterra left DFE Pharma, a joint venture in Germany with FrieslandCampina. These sales were made out of necessity, but Fonterra has been booking green figures again in recent years. Earlier this year, Fonterra also considered divesting its activities in Australia, but eventually decided against it.
Wouter Job
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