Dairy Co-operative Fonterra (ASX:FSF) has purchased the minority interest in Chilean milk processor Prolesur, the move comes as the Co-op looks to streamline its operations in Chile.
Fundación Isabel Aninat sold its 13.6 per cent shareholding for $29.3 million NZD, which takes Fonterra’s ownership of Prolesur from 86.2 per cent to 99.9 per cent.
Prolesur is a milk processor which sells most of its production to leading Chilean dairy company Soprole which is 99.9 per cent owned by Fonterra.
Fonterra says having the two businesses more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration.
Shares in Fonterra (ASX:FSF) closed 2.3 per cent lower at $3.83 yesterday.