Fonterra Co-operative Group Ltd has outlined the next steps in its plan to divest its global consumer business, along with Fonterra Oceania and Sri Lanka.
The divestment process, first announced in November 2024, includes exploring both a trade sale and an Initial Public Offering (IPO). Fonterra will engage with potential buyers in the coming weeks while also preparing for a possible public listing.
Miles Hurrell, CEO of Fonterra, said the decision aligns with the company’s strategy to focus on its Foodservice and Ingredients businesses.
“We are clear on our strategy and have a pathway to grow further value for farmer shareholders and the New Zealand economy through our innovative Foodservice and Ingredients businesses.
As part of the IPO preparations, Fonterra has named key leadership appointments and chosen a corporate brand for the entity. The business will be known as Mainland Group if it proceeds with an IPO.
“The Mainland brand has strong New Zealand dairy heritage and is also well known by consumers in New Zealand, Australia and across many of our global markets,” Hurrell said.
René Dedoncker has been named CEO-elect of Mainland Group. Dedoncker is currently Fonterra’s Managing Director of Global Markets Consumer and Foodservice and has led Fonterra’s Australian business since 2017. Paul Victor has been appointed CFO-elect. He joins Fonterra from ASX-listed Incitec Pivot Limited, where he was Chief Financial Officer.
“René and Paul are very capable leaders with the experience to take these businesses forward into their next phase. Both will lead roadshow meetings with potential investor groups, commencing in March,” Hurrell said.
Fonterra aims to ensure that its decision maximises long-term value for farmer shareholders, strengthens its competitive position in Ingredients and Foodservice, and expands international market access for New Zealand dairy. The company also targets a significant capital return for farmer shareholders and unit holders following the divestment.
Further updates will be provided as the process progresses.
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