Fonterra (FCG NZ) Inks Spin-Off With Lactalis

• Fonterra Co-Operative Group (FCG NZ) has agreed to sell its consumer and associated businesses to Lactalis for NZ$3.845bn, in line with prior market valuations upward of NZ$4bn for the "Mainland Group".

• The ACCC previously commenced a formal review of Lactalis' proposed acquisition on the 2nd May, and on the 10th July, announced it would not oppose the deal.

• There is potential for a further NZ$375mn increase from the inclusion of the Bega licences held by Fonterra’s Australian business - once a legal dispute is resolved.