Expectations Rise for Mainland Group Sale

On May 14, 2025, it was reported from New Zealand that expectations surrounding the sale of the Mainland Group are causing significant market activity. Fonterra’s shares have responded positively with anticipation of a capital return if the sale occurs. FCG shares are currently at $4.59, nearly doubling from a year earlier, while FSF units have risen to $6.18, marking a 75% increase since May 2024.

An independent review by Northington Partners for Fonterra's FY2025 first half results highlighted the potential divestment's impact. Significant market interest from multinational companies like France's Lactalis, Netherlands' Friesland Campina, and Japan's Meiji Holdings has been noted. Australian Bega Group is also expected to be a key contender.

The potential sale includes major Australian assets, and the market speculates a trade sale is more likely than an IPO due to the diverse set of consumer businesses available.