Fonterra divests Chile operations for $641 mln to Peru's Gloria Foods

November 18, 2022 05:11 AM AEDT | By Reuters
Follow us on Google News:

(Updates with detail, context, CEO comment)

Nov 18 (Reuters) - New Zealand's dairy exporter Fonterra Co-operative Group said on Friday that it was selling its dairy operations in Chile to Peruvian firm Gloria Foods in multiple transactions worth about 591.07 billion Chilean pesos ($641.42 million).

The divestment comes as part of Fonterra's renewed focus on bolstering its operations in New Zealand as it phases out its overseas milk pools, while reducing debt.

The process to hive off its Chilean operations, Soprole, began in April this year and will be conducted through "a number of transactions" involving sale of shares in a Fonterra holding company, the dairy exporter said.

"Soprole is a very good business but does not rely on New Zealand milk or expertise," Fonterra Chief Executive Officer Miles Hurrell said.

"We are now at the end of the divestment process and have agreed to sell Soprole to Gloria Foods - JORB S.A. (Gloria Foods)."

The deal is subject to regulatory approvals and commencement of a tender process in Chile for the outstanding shares in Soprole not already owned by Fonterra. ($1 = 921.5000 Chilean pesos) (Reporting by Sameer Manekar in Bengaluru; Editing by Anil D'Silva)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK