Fonterra has announced plans to sell its Chilean Soprole business to Peruvian firm Gloria Foods in a number of transactions totalling around CLP 591.07 billion (approx. $641.4 million).

According to Fonterra’s CEO, Miles Hurrell, the divestment process formally began in April 2022, following the launch of Fonterra’s strategy to 2030, a “key pillar” of which is to focus on New Zealand milk.

In a statement, Hurrell said: “Soprole is a very good business but does not rely on New Zealand milk or expertise. We are now at the end of the divestment process and have agreed to sell Soprole to Gloria Foods.”

In addition to Peru, Gloria operates in Bolivia, Puerto Rico, Argentina, Colombia and Uruguay, and has a longstanding relationship with Fonterra in South America.

The divestment is subject to regulatory approvals and the commencement of a public tender offer in Chile for the outstanding shares in Soprole not already owned by Fonterra. It is expected to take six months to fulfil the conditions.