Fonterra and Nestlé complete sale of Brazilian joint venture
Fonterra Co-operative Group Ltd and Nestlé have confirmed that the sale of their Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis is complete.
Owned 51% by Fonterra and 49% by Nestlé, DPA Brazil was sold for approximately NZ$240 million.
Miles Hurrell, Fonterra CEO, said the regulatory approvals have now been received and the sale allows Fonterra to focus on its New Zealand milk pool.
Fonterra said the proceeds of the sale will offset debt related to that business, which means there will be little cash impact on Fonterra’s earnings.
Final transaction proceeds remain subject to customary post-completion adjustments.
Fonterra’s FY24 announced forecast earnings range of 45–60 cents per share will continue to reflect only the underlying performance of the business, as with previous one-off transactions.
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