Fonterra has all but bought outright the Chilean dairy company Soprole in a $250 million deal which takes its shareholding to 99.4%.
Fonterra chief executive Andrew Ferrier said in a statement that the New Zealand dairy giant had added to its 56.85% stake by buying 42.6% from minority shareholder Fundacion Isabel Aninat, with details to be finalised in the next few days.
Soprole was the most recognised brand in Chile behind Coca-Cola and had a third of the domestic consumer dairy market, he said.
The transaction also gives Fonterra 86.2% of Chilean manufacturing subsidiary Prolesur, of which Fundacion, a 13.6% shareholder, is a partner.
Mr Ferrier said more than 40% of Soprole sales were from products introduced in the last three years and Fonterra intended continuing introducing innovation and new opportunities through Soprole into expanding South American markets.
Soprole last year increased its profit 160% to $66.3 million and Mr Ferrier said the investment had earned Fonterra shareholders $25 million a year.
