Industrial conglomerate buys Mexican dairy business

MEXICO – Industrial products group ALFA has bought the New Zealand Milk (Mexico) subsidiary from Fonterra.

ALFA bought the business through its Sigma Alimentos food division for an undisclosed price and the deal has yet to be cleared by Mexican competition authorities.

Fonterra entered the Mexican market nearly ten years ago, and said that maintaining its presence “no longer made strategic sense”.

Fonterra’s ingredient business in Mexico is unaffected by the deal.