Fonterra has agreed to sell its Soprole dairy business in Chile to Peruvian dairy company, Gloria Foods. The divestment comprises a number of transactions that result in Fonterra receiving approximately NZD1.055 billion.
Top New Zealand law firm, MinterEllisonRuddWatts advised Fonterra on the deal.
The dairy co-operative’s divestment is aligned with Fonterra’s strategy to 2030, a key pillar of which is to focus on New Zealand milk.
MinterEllisonRuddWatts’ deal team was led by Partner Isaac Stewart and included Partners Christopher Young and Andrew Ryan, and Senior Associates Tayla Johnston and Phillip Chrisp.
On signing the agreement to sell, Isaac Stewart said: “This is a significant deal for Fonterra, and we are delighted to assist the company in implementing this strategic initiative.”
“It was fantastic to work alongside Fonterra’s Global Legal Team, and the rest of the deal team, who all worked tirelessly in delivering this excellent outcome.”
Fonterra’s Chief Executive, Miles Hurrell says that Fonterra has a long history in Chile and is pleased to have reached agreement with Gloria Foods, which also has a proud dairy history in South America.
The sale is subject to several conditions including regulatory approvals (including from the competition authority in Chile) and a public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra. Satisfaction of the conditions is expected to take approximately six months.
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