Mainland Group is set to go from "Friend in the fridge' to 'Ami dans le frigo" after final approvals of divestment.

Fonterra’s farmer shareholders have given the go-ahead for the Co-operative to sell its global Consumer and associated businesses to French multinational, Lactalis for $4.22 billion.

Massive Support From Fonterra Farmers

Farmer shareholders voted in an overwhelming majority at a virtual Special Meeting on 30 October 2025, with 88.47% of the total farmer votes cast in support of the divestment.

The threshold needed to approve the sale was for more than 50% of the votes from those entitled to vote (based on share-backed kgMS) and who actually voted in favour of the proposal.

Chairman Peter McBride says the Board and management team were encouraged by the level of engagement from farmer shareholders in the lead-up to the vote.

“We’ve been pleased to see so many farmers joining in the discussions since the start of this process in May last year when we first announced the decision to explore divestment options, and especially over the past month or so when the full details have been available,” says Mr McBride.

"It helps to demonstrate one of the key things that sets us apart from most other processors – our farmers have a direct say in the future of their Co-operative, and they’ve made the most of that opportunity."

Mr McBride says the decision to divest the Mainland Group businesses is significant and one the Board did not take lightly.

ACCC Approves Acquisition

The ACCC weighed in on the proposed sale earlier this year, ultimately deciding that the sale could go ahead unopposed by them. 

“We looked very closely at the transaction as it will combine two of the largest buyers of raw milk in Victoria and lead to some further consolidation in Tasmania,” ACCC Deputy Chair Mick Keogh said.

The ACCC found that across Gippsland, the Murray and Western Victoria, alternative buyers of raw milk would continue to constrain Lactalis if the acquisition proceeded.



“We found that while the industry in Tasmania is already concentrated, Lactalis has a limited presence and the acquisition would not substantially alter the market dynamics. If the acquisition proceeded, Lactalis would continue to be constrained by Saputo and, to a lesser extent, Mondelez,” Mr Keogh said.

Lactalis to Become Australia's Largest Dairy Company

With the acquisition of Mainland Group Holdings Limited, Lactalis will become the largest dairy company in Australia - it's already the largest dairy company in the world. 

The purchase includes 16 manufacturing facilities in Australia, New Zealand, Sri-Lanka, Malaysia, Indonesia and Saudi Arabia. Adding to their existing 15 manufacturing facilities and over 2,500 employees across Australia.

Mainland Group includes well-known brands Western Star, Perfect Italiano, and Mainland.

“With this acquisition, we significantly strengthen our strategy across Oceania, Southeast Asia and the Middle East. Combining the Fonterra consumer business operations and market leading brands with our existing footprint in Australia and Asia will allow Lactalis to further grow its position in key markets," said Emmanuel Besnier, Lactalis Chairman.

Fonterra expects the transaction to be completed in the first half of 2026, subject to securing certain regulatory approvals and the separation of Mainland Group business from Fonterra.

Sources: Fonterra, ACCC, Lactalis