Fonterra and international food group Nestlé have agreed to sell their Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis for 700 million Brazilian real (about $210m).
The co-op said the deal is expected to be completed by mid-2023, subject to regulatory authority approvals.
Fonterra chief executive Miles Hurrell said the sale of DPA Brazil aligned with the co-op’s strategy of prioritising its New Zealand milk pool.
“DPA Brazil has reached maturity as an investment for us, and the sale allows us to prioritise our resources to the businesses that are core to our strategy,” Hurrell said.
Fonterra said the sale was delayed due to market conditions related to Covid-19.