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Fonterra to Sell Mainland Group for $4.22 Billion

10/9/2025

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Summary

Story summary

Fonterra will divest Mainland Group to Lactalis for $4.22 billion, pending shareholder approval on October 30.
The co-op targets 10-12% return on capital and plans up to $1 billion in Ingredients and Foodservice.
Fonterra has engaged farmers for 16 months.
Contracts include a 10-year raw-milk contract and a 3-year global supply contract, with automatic renewals.

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Story summary

Fonterra will divest Mainland Group to Lactalis for $4.22 billion, pending shareholder approval on October 30.
The co-op targets 10-12% return on capital and plans up to $1 billion in Ingredients and Foodservice.
Fonterra has engaged farmers for 16 months.
Contracts include a 10-year raw-milk contract and a 3-year global supply contract, with automatic renewals.