Herbert Smith Freehills Kramer advises Fonterra on sale of its global dairy consumer business to Lactalis for NZ$4.22 billion

Herbert Smith Freehills Kramer (HSF Kramer) has advised Fonterra Co-operative Group Limited (Fonterra) on the sale of its global consumer and associates businesses to Lactalis for NZ$4.22 billion.

The transaction is one of the largest in New Zealand corporate history and involves the sale of Australian and New Zealand household brands such as Anchor, Bega, Mainland and Western Star as well as operations in Australia, New Zealand, Sri Lanka, Southeast Asia and the Middle East.

Following completion, Lactalis will be the largest dairy company in Australia. Under the terms relating to the sale, Fonterra will continue to supply raw milk, dairy ingredients and products to the divested businesses under long-term supply agreements.

Working alongside the Fonterra team, its New Zealand counsel Russell McVeagh and advisors Craigs Investment Partners, Jarden, JP Morgan, and PwC, HSF Kramer’s role included advising on the M&A and capital markets aspects of the dual-track sale and IPO process, Australian regulatory workstreams (including FIRB and ACCC) and the running and settlement of litigation with Bega Cheese Limited.

The HSF Kramer team has been led by Nick Baker, Tim McEwen, Linda Evans and Merryn Quayle and has involved a number of lawyers across our Australian offices.

The transaction is subject to farmer shareholder and regulatory approvals. It is expected to complete in the first half of 2026.

You can learn more about this transaction on Fonterra’s website.