Fonterra Co-operative Group has struck a deal to sell its consumer business to French dairy giant Lactalis for $3.84 billion. The transaction is subject to shareholder approval, which is expected to occur in late October or early November.
The co-op is targeting a capital return of $2 per share, and it includes a long-term agreement for Fonterra to sell milk and ingredients to Lactalis. In addition to the base enterprise value of $3.8 billion, there was potential for a further $375 million increase from the inclusion of the Bega licences.
Reference from News: Fonterra agrees sale of consumer assets to Lactalis for $3.84b