Fonterra said it would spend $29.3 million on taking a stake Chilean milk processor Prolesur, lifting its stake to just under 100 per cent.
The co-op said it had bought the interest in Prolesur, held by Fundación Isabel Aninat, as it sought to streamline its operations in Chile.
The transaction will take Fonterra's ownership in Prolesur from 86.2 per cent to 99.9 per cent.
Prolesur is a milk processor in southern Chile which sells most of its production to the consumer brands company Soprole, which is also just under 100 per cent owned by Fonterra.
Fonterra's chief executive for Africa, Middle East, Europe, North Asia and the Americas, Kelvin Wickham, said the move would allow Fonterra to simplify the interface between Prolesur and Soprole and take steps to better integrate the two businesses.