Fonterra farmer shareholders have voted in favour of Fonterra’s plan to sell its consumer products division and associated businesses, Mainland Group, to Lactalis for $4.22 billion.
With 88.47 per cent of the farmers’ votes supporting the divestment cast at a virtual ‘special meeting’, the company said that the support of the shareholders helps to showcase one of the main objectives differentiating Fonterra from most other processors.
“We’ve been pleased to see so many farmers joining in the discussions since the start of this process in May last year, when we first announced the decision to explore divestment options, and especially over the past month or so when the full details have been available,” said Peter McBride, chairman of Fonterra.
“We have examined the strategic context we operate in, our strengths and how, as a co-op, we create value for our farmer owners. We will have a simplified and more focused business, the value of which cannot be overstated.”
Fonterra needed more than 50 per cent of the votes to approve the sale.
The separation of Mainland Group’s business from Fonterra and its divestment is now awaiting only regulatory approvals, which are in progress, with the transaction expected to be completed in the first half of next year.
Meanwhile, Fonterra said the giant dairy will invest NZ$75 million ($66 million) to expand butter production at its Clandeboye site in South Canterbury.
