Local Conglomerate Takes Full Control of Dairy Operations

GraceKennedy Limited has entered into an agreement to acquire Fonterra Co-operative Group's 50% shareholding in the companies that operate the local dairy joint venture, GK Foods & Dairy Limited. The transaction, subject to regulatory approvals, will see GraceKennedy become the sole owner of the dairy manufacturing and distribution business.

Strategic Move to Strengthen Food Security

The acquisition aligns with GraceKennedy's long-term strategy to deepen its investment in Jamaica's food sector and enhance national food security. "This move allows us to have full control over the strategic direction of this important business," said a GraceKennedy spokesperson. "We are committed to continuing the production of high-quality, locally relevant dairy products for the Jamaican market."

The joint venture, established several years ago, has been responsible for manufacturing and distributing a range of dairy products under popular local brands. Industry analysts view GraceKennedy's buyout as a consolidation play that streamlines operations and decision-making for the dairy line.

Fonterra's Strategic Refocus

For New Zealand-based Fonterra, the divestment is part of a broader portfolio review and strategic refocusing on its core markets and operations elsewhere. The company stated that the decision allows it to redirect resources while ensuring the Jamaican dairy business remains in capable local hands.

The financial terms of the transaction were not disclosed. The deal is expected to be finalized in the coming months following the completion of standard closing conditions.