As announced in November 2022, the sale is subject to a number of conditions, including the receipt of approval from the competition authority in Chile.

Miles Hurrell, chief executive manager, says he’s pleased to confirm approval from the competition authority, Fiscalía Nacional Económica (FNE), has now been received.

“Completion of the sale remains subject to satisfaction of other conditions previously announced, including the commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra. Receipt of FNE approval is a significant milestone for the transaction, and we remain on track in the sale process. We will update the market on the expected timing for completion of the sale as the remaining conditions are progressed,” says Hurrell.

Fonterra remains committed to targeting a significant capital return to shareholders and unitholders.

The Fonterra Board intends to make a final decision on the amount and timing of any capital return once the sale agreement is unconditional, cash proceeds are received in New Zealand, and having regard to other relevant factors, including Fonterra’s debt and earnings outlook at such time.