Fonterra ‘set to sell Sanlu’

Fonterra has reportedly confirmed that it is looking to sell its stake in Chinese dairy Sanlu.

The world’s biggest dairy exporter is said to be having talks about a possible third-party acquisition of the company, which was the first of 22 in China to be identified as producers of baby milk powder contaminated by melamine.
However, industry experts have said that it’s unlikely a single company will be able to take over Sanlu as its debts total more than 700 million RMB (NZ$169 million)