Fonterra’s CEO Miles Hurrell has stated that the Co-decision op’s to sell DPA Brazil is in line with its objective of focusing on the New Zealand milk pool. Investment in DPA Brazil has matured, and the sale will allow us to refocus on growing our core companies. Fonterra is relieved to have closed the deal, which was put on hold owing to COVID-19 market circumstances, according to Mr. Hurrell. Fonterra’s financial disclosures have shown DPA Brazil held for sale from January 2020.
DPA was founded in 2003 by Fonterra and Nestlé with the intention of producing and selling dairy products throughout Latin America. The joint venture shifted its attention back to Brazil and chilled dairy in 2014.
For its part, Nestlé owns 49% of Fonterra’s stock. DPA has 1,300 employees throughout its two factories. In Brazil, DPA promotes several well-known brands, including Nestlé, Chamyto, Ninho, Chandelle, Chambinho, Neston, and Molico.
Competition authority permission is a precondition to the transaction. Throughout the pre-completion phase, the underlying performance of the DPA Brazil business will be included in Fonterra’s previously stated FY23 profits projection. In its financial report for FY23, Fonterra will give an update on the overall impact of its divestment initiative.
