© Vigor.
Arla Foods has sold its 8% stake in Brazilian dairy company Vigor, handing full control to Mexico’s Grupo Lala.
The 8% holding takes Lala’s stake in Vigor to 99.99%, after it agreed a BRL 5.725 billion ($1.84 billion) deal with J&F Investimentos for 91.99% in August.
That deal also included an interest in Brazilian dairy company Itambé, which Vigor bought into in 2013.
Arla Foods executive vice-president Tim Ørting Jørgensen, who is responsible for Arla’s international business, said: “Arla has operated in the Brazilian market for decades, however a co-ownership of Vigor no longer serves our strategic purpose. 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 is the largest dairy company in Brazil. In 1986 Arla entered a 50/50 joint venture partnership with Vigor under the name Dan Vigor, which consisted of local cheese production under the Danubio brand. In 2014, Arla exchanged the joint ownership of Dan Vigor for an 8% share in Vigor.
This latest move will have been expected, but still represents a major step towards Lala’s completion of the Vigor deal.
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