Italian dairy giant Parmalat has completed the previously-announced sale of 100% of its Newlat subsidiary to TMT Finance.

"We completed the sale of Newlat yesterday (28 May) to comply with an order from the antitrust authority. This was required as a condition for clearing the Eurolat acquisition," a spokesperson for the company told just-food.

The disposal took place for a token consideration of EUR1 (US$1.56).

Inter-company accounts worth around EUR4.6m were repaid prior to completion, generating cash flow for the Parmalat "of a like amount".

With this transaction, Parmalat will offload a total of approximately EUR36m in debt and amounts payable under leases, based on figures of 31 March.

Newlat operates the Matese and Torre in Pietra dairy brands.