Fonterra Co-Operative Group Reaches Agreement to Sell Consumer and Related Businesses to Lactalis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Source: WSJ
Fonterra's Sale Agreement: Fonterra Co-Operative Group has agreed to sell its consumer businesses to Lactalis for a base enterprise value of NZ$3.845 billion (approximately $2.23 billion).
Potential Additional Earnings: The deal may allow Fonterra to earn an extra NZ$375 million through certain licenses associated with its Australian operations.
Bega Cheese Dispute: The inclusion of Bega licenses in the deal is contingent upon resolving an ongoing dispute with Bega Cheese.
Financial Implications: This transaction reflects Fonterra's strategic moves within the dairy industry and highlights the financial dynamics involved in such large-scale business agreements.
Analyst Views on FCG
Wall Street analysts forecast FCG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FCG is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 24.400
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Current: 24.400
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
