Nestle and Fonterra break up Latam partnership
ZURICH May 27 (Reuters) - Food group Nestle said it was breaking up parts of a partnership with New Zealand dairy group Fonterra in Latin America to better reflect both companies' strategies in the region.
Nestle will again own and operate milk powder factories in Brazil, Argentina, Ecuador and Colombia that have been up to now run by Dairy Partners Americas (DPA), a 50-50 joint venture set up by Nestle and Fonterra in 2003, the world's No.1 food group said in a statement on Tuesday.
The chilled and liquid dairy business in Venezuela will go back to Fonterra that will operate it with a local partner, Nestle said, adding that the joint venture would remain in place in Brazil for the commercialisation of chilled dairy, with Fonterra taking a 51 percent stake and Nestle 49 percent.
Nestle said the joint venture had performed well for ten years, but it was now time to realign the partnership. It did not give further details on the reasons of the realignment.
(Reporting by Silke Koltrowitz)
© Thomson Reuters 2017 All rights reserved.