NZ's biggest company will take a 51% stake in Dairy Partners Americas Brasil, which will continue to commercialise chilled dairy products, while Fonterra and a local partner will take Nestle's share of DPA Venezuela, Fonterra said in a statement.
'A bigger stake in DPA Brazil means we will be well-placed to drive our volume and value growth strategy focusing on everyday nutrition offerings.'
Fonterra will sell its share in the DPA milk powder manufacturing businesses and DPA Ecuador to Nestle, the world's biggest food group, and expects to receive $96 million in the next financial year.
"We've seen increased prosperity in markets like Brazil with rapid urban growth and a focus on healthy nutrition driving demand for dairy products," Fonterra managing director Latin America Alex Turnbull said.
"A bigger stake in DPA Brazil means we will be well-placed to drive our volume and value growth strategy focusing on everyday nutrition offerings."
Fonterra produces more than 900,000 tonnes of dairy products a year, with some $3.5 billion in revenue from consumer dairy, food service, and dairy ingredients, it said.
The tweak to the decade-long agreement is subject to regulatory approval.
Units in the Fonterra Shareholders' Fund, which gives investors exposure to the group's dividends, rose 1.4% to $6 yesterday and have gained 3.5% this year.
Swiss-listed Nestle's shares slipped 0.4% to 69.55 Swiss francs and have advanced 7% this year.
