Dairy cooperative Arla has announced that it is divesting its 8% share in Brazilian dairy company Vigor Alimentos with immediate effect, following a change in the group's ownership.
The dairy business was acquired by Mexican food company Lala Group in August for R$5.72 (€1.54 billion), after purchasing 91.99% of Vigor's shares from FB Participações and JBS.
Arla has now sold the remaining 8% to Lala.
“Arla has operated in the Brazilian market for decades, however, a co-ownership of Vigor no longer serves our strategic purpose," said Tim Ørting Jørgensen, executive vice president of Arla Foods.
"Our decision to divest is the best solution for Arla as we continue to focus our strategic investments on creating sustainable growth through our business in Asia, Africa, the Middle East and USA.”
Vigor operates 11 milk collection centres, 14 production plants, 31 distribution centres, and 67,000 points of sale in Brazil.
Its portfolio includes yoghurt, cheese and other dairy products, marketed under the Vigor, Danubio, Faixa Azul, Serrabella Leco and Amelia brands.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.