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Dairy giants eye Fonterra's consumer division
Several major dairy players, including Japan's Meiji, Lactalis and Saputo, are considering making a bid for Fonterra's consumer dairy division. This was reported by Reuters news agency based on conversations with a number of stakeholders.
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Fonterra is exploring the sale and possible separation of its consumer businesses. These include brands such as Anker butter, Mainland cheese, Kapiti ice cream and Anlene infant nutrition. The Australian and Sri Lanka divisions are also up for sale. These two businesses cover the entire dairy chain, from milk collection on the farm to the sale of dairy products to retail and foodservice.
The parts to be sold could generate around €2.37 billion, it was said. Reuters told. The American private equity firm Warburg Pincus is also said to be interested, it has become known.
In September last year, Fonterra first indicated that it wanted to change course and focus more on high-quality dairy ingredients. The aim was to make a decision by the middle of this year, but an independent listing of the non-strategic parts is also being kept in reserve as an option.
If it is the last choice, the new unit will be called the Mainland Group. Fonterra has already appointed a number of directors to lead this company, but is waiting for a decision by the Fonterra members' meeting to make a decision. After all, it is the co-op board that has the final say.
Warburg Pincus declined to comment on reports that it was in the market for consumer activities. Reuters has also not been able to get a response from the other parties.