Fonterra has completed the sale of its global consumer and associated businesses, Mainland Group, to French dairy giant Lactalis for $4.22 billion. 

The sale, announced last year, involves some of Fonterra’s most recognised brands, including Anchor, Mainland and Kāpiti. 

Fonterra chairman Peter McBride said the completion of the sale is a significant milestone which sets the co-operative up for the future. 

“With the divestment complete, Fonterra can return capital to its owners and focus on growing further through its core business as a New Zealand farmer-owned global B2B dairy provider,” McBride said in an NZX statement. 

Departing Fonterra chief executive Miles Hurrell said the completion of the sale signals the start of a long-term partnership with Lactalis. 

“Lactalis becomes one of our most significant Ingredients customers, as we continue to supply milk and other products to the divested businesses,” he said. 

Fonterra will return $3.2b of divestment proceeds to farmer shareholders and unit holders via a $2.00 per share capital return. 

The dairy co-operative’s shareholder farmers approved the sale at a virtual special meeting last month, with 98.85% voting in favour. The proposal required 75% support. 

Analysts estimate the sale will deliver about $400,000 tax-free to the average Fonterra farmer. 

The sale will also mean Fonterra will have $1b to spend over the next three to four years in projects to generate further value through its remaining high-performing Ingredients and Foodservice businesses. 

Under Hurrell, Fonterra has raised over $7b through the sale of its assets ranging from an ice cream manufacturer to farms in China. 

Fonterra sold Tip Top to Froneri for $380 million in 2019, DFE Pharma to CVC Capital for $633m in 2020, holdings in Beingmate for $237m in 2020 and 2021, various farms in China ($640m) and Chile’s Soprole to Gloria Foods ($1.055b) in 2023.