REUTERS: Fonterra Co-Operative Group said on Monday (Jun 28) it will sell its stakes in two joint-venture farms in China’s Shandong province to Singapore-based AustAsia Investment Holdings for NZ$88 million (US$62 million).
The sale comes amid a retreat by the world’s largest dairy exporter since 2019 from an ill-fated overseas expansion that drew sharp criticism from its 10,000-plus farmer-shareholders.
Advertisement
Advertisement
Fonterra, which owns 51 per cent of the two farms, said the sale is not subject to any regulatory approvals and is unconditional.
AustAsia, 75 per cent owned by Singaporean agri-food company Japfa, will buy the farms outright for US$115.5 million, with the difference being paid to Fonterra’s joint venture partner, the New Zealand co-operative said.
“Greater China continues to be one of our most important strategic markets. We remain committed to our China business,” CEO Miles Hurrell said in a statement.
The dairy giant in April sold two fully owned farms in China to Inner Mongolia Youran Dairy for NZ$552 million.
Advertisement
Advertisement