Fonterra Confirms Sale of Anchor and Mainland Brands in Strategic Shift, Valued at Up to $3.5 Billion

CEO Miles Hurrell explained that the divestment aligns with Fonterra’s revised strategic direction. “We have thoroughly assessed potential divestment options and have concluded that a sale of our global consumer and related businesses maximizes value for our co-op,” said Hurrell.

This significant divestment will include 17 manufacturing sites across New Zealand, Australia, and Sri Lanka, as well as Fonterra’s Oceania and Sri Lanka integrated operations. The sale has already drawn considerable interest from potential buyers, underscoring the strong market value and brand recognition of Fonterra’s consumer portfolio.

While the final divestment approach is yet to be determined, Fonterra is exploring both a trade sale to industry players and an initial public offering (IPO) for a new entity comprising these assets. Farmer shareholders will have the opportunity to vote on the preferred option, which is anticipated to generate a substantial capital return.

Market analysts view the move as strategically sound. Matt Montgomerie, an investment analyst at Forsyth Barr, commented, “The consumer business has long posed challenges for Fonterra, and a shift to focus on its core areas, particularly in foodservice, represents a wise step forward.” Montgomerie estimates that the sale could yield between $2.5 and $3.5 billion.

Photo: Supplied/ Greenpeace by rnz.co.nz