Fonterra has confirmed that its Chilean subsidiary Soprole has withdrawn a proposal to merge its business with Nestle’s liquid and dairy business in the country.
Fonterra CEO Andrew Ferrier said today (6 April) that Soprole and Nestle have agreed to withdraw the application as the companies believed “the conditions to continue with the application were not appropriate”.
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The New Zealand co-operative and the Swiss dairy giant have no plans to present a new application to the Chilean authorities.
The two companies announced plans in November to establish a joint venture for chilled and liquid dairy products in the country, which was set to include the manufacture, retail and distribution of yoghurts, desserts, fruit juices, cheese, cream, butter and margarine.
Ferrier said that Soprole would now focus on continuing to grow its consumer business in Chile. “Soprole already has a very strong position in the Chile market and has been posting strong growth in recent years. The team is now focused on building on that strong foundation.”
Nestle and Fonterra have a number of Latin American joint ventures under the Dairy Partners Americas alliance, which was launched in 2002.
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