16 Dec 2009

Fonterra to take over joint venture Saudi company

9:54 pm on 16 December 2009

Fonterra has reached a final agreement to buy the remaining 51% stake in its joint-venture partner, Saudi New Zealand Milk products, for $45 million.

Saudi New Zealand Milk Products packs and processes more than 30,000 metric tonnes of New Zealand milk powder and cheese per year for Fonterra and a number of other customers.

The plant was established by Fonterra and SADAFCO in 1996, and has been managed by Fonterra since then.

The acquisition is still subject to regulatory approval in Saudi Arabia.

The deal will see Fonterra take full ownership of the factory, securing its current manufacturing capacity requirements for Middle East, Africa and the Commonwealth of Independent States region and allow for further expansion and investment.