The sale of Fonterra and Nestlé's Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis is complete, the dairy co-op said.
The sale was first announced in December last year but was subject to regulatory approval.
“With our decision to focus on our New Zealand milk pool, the sale of DPA Brazil means we can prioritise our resources to the businesses that are core to our strategy,” Fonterra chief executive Miles Hurrell said in a statement.
The DPA Brazil joint venture was owned 51 per cent by Fonterra and 49 per cent by Nestlé.
Fonterra and Nestlé sold the joint venture for BRL700 million - about $240 million at current exchange rates.
“These proceeds offset debt related to that business, which means there will be little cash impact on Fonterra’s earnings,” Hurrell said.
There was a negative foreign currency translation reserve balance of about $70m related to Fonterra’s ownership of the DPA Brazil asset, which will be reflected as a non-cash accounting reclassification in Fonterra’s profit and loss statement, the co-op said.
As with previous one-off transactions, Fonterra’s 2024 announced forecast earnings range of 45-60 cents per share would continue to reflect only the underlying performance of the business, it said.
Last November, Fonterra sold its Soprole business in Chile - for just over $1 billion - to Gloria Foods.
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