January 22, 2020 / 8:00 PM / a month ago

New Zealand's Fonterra expects more deals in 2020 amid restructuring

FILE PHOTO: The Fonterra logo is seen near the Fonterra Te Rapa plant near Hamilton August 6, 2013. REUTERS/Nigel Marple/File Photo

(Reuters) - New Zealand’s Fonterra (FCG.NZ) said on Thursday that fiscal 2020 would see more deals as the world’s biggest dairy exporter reviews its assets and shifts focus back home.

The company, which reported a record annual loss in September, had decided to end its ambitious overseas expansion plans and vowed to cut debt by focusing on domestic production.

Its expansion into countries like China and launch of value added consumer products had also drawn sharp criticism from the 10,000 plus farmers who make up its cooperative.

Fonterra said it earned NZ$554 million ($365.20 million) in cash from the sale of its 50% stake in DFE Pharma to CVC Strategic Opportunities II, a fund managed by British private equity firm CVC Capital Partners.

“It is too early to assess the overall impact of these on the Co-op’s 2020 financial year,” Chief Financial Officer Marc Rivers said in a statement.

The company will update the market on the deals in its first-half results in March, the CFO said.

($1 = 1.5170 New Zealand dollars)

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Arun Koyyur

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