Fonterra is selling its Australian ice cream business to Nestle Australia and Bulla Dairy Foods.
The company says Nestle will buy the Peters brand in Western Australia and the Connoisseur ice cream brand, while Bulla will buy the license to make and market Cadbury ice cream in Australia.
Both agreements are conditional upon regulatory approval.
As a result of the sale of its Australian ice cream brands, up to 140 people will be made redundant at Fonterra's Balcatta site in Western Australia.
Separately, Fonterra says it will review its non-core regional liquid milk businesses in Australia, as its primary focus is in cheese, spreads, yoghurts and dairy desserts.
Exit from joint venture in india
Earlier this week, Fonterra said it's exiting an investment in India, saying it no longer fitted the company's strategic priorities.
The company invested $US19.8 million in a joint venture in 2001, and had since written the value down to a nominal amount.
it will pass its stake to Britannia New Zealand Foods.
Fonterra says domestic milk supply in India is fragmented and developing an efficient milk supply chain there would require significant development and investment.