Thursday, 19 December 2019 09:44

Fonterra pays $30m to gain full control of Chilean processor

Written by  Staff Reporters
The purchase takes Fonterra's stake in Prolesur to 99.9%. The purchase takes Fonterra's stake in Prolesur to 99.9%.

Fonterra has paid $30 million to boost its stake in struggling Chilean milk processor Prolesur.

The 13.6% stake bought from Fundación Isabel Aninat takes the co-op’s stake in Prolesur to 99.9%.

Prolesur, based in southern Chile which sells most of its production to Soprole, a leading consumer branded dairy company in Chile and is 99.9% owned by Fonterra. 

The remaining 0.1% of Prolesur’s shares are held by minority shareholders, which Fonterra will offer to purchase at the same price per share being paid to the Fundación for its shareholding.

Fonterra chief executive Africa, Middle East, Europe, North Asia and the Americas (AMENA) Kelvin Wickham says the acquisition allows Fonterra to simplify the interface between Prolesur and Soprole and take steps to better integrate the two businesses. 

Both Prolesur and Soprole have faced challenging trading conditions in recent years.

“Having the two more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration,” says Wickham.

“It also allows us greater flexibility as we focus on realising the best value for the co-op from our businesses in Chile in line with our new strategy.”

Fonterra’s new strategy focuses on using mostly milk from its New Zealand farmer suppliers to supply dairy products around the world.

It is looking at streamlining overseas milk pools; China, Chile and Australia.

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Misguided campaign

OPINION: Last week, Greenpeace lit up Fonterra's Auckland headquarters with 'messages from the common people' - that the sector is polluting the environment.

Featured

Farmstrong marks 10 years of rural support

Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter