Fonterra has completed the sale of its two farms in China for $552 million after the deal cleared regulatory approvals.
Chief executive Miles Hurrell says the completion of the sale is an important milestone for Fonterra. Photo: RNZ / Dan Cook
The purchase of the Ying and Yutain properties by the Inner Mongolia Youran Dairy Company was announced in October last year, but was subject to anti-trust clearance and other regulatory approvals in China.
The approvals have now been received.
The transaction comprises the original sale price of $513m plus $39m in settlement adjustments.
Chief executive Miles Hurrell said the completion of the sale was an important milestone for the company, following its strategic refresh.
"The China market is fast moving and inspires us to keep innovating. Our China team will now continue with their focus on creating value from our New Zealand farmers' milk through new products, applications and close partnerships with our customers," Hurrell said in a statement.
"As we've seen from our recent FY21 interim financial results, our China business is performing very well, underpinned by strong demand for New Zealand dairy driven by our team on the ground."
Meanwhile, Fonterra is still pushing through with the sale of its 85 percent interest in Hangu farm to minority shareholder Beijing Sanyuan Venture Capital Co Ltd.
It is expected to be completed this financial year.