Fonterra may sell off Sanlu stake

New Zealand-based Fonterra Cooperative Group is considering selling its 43% stake in Sanlu Group – the Hebei-based dairy firm at the center of an industry-wide product safety scandal, Bloomberg reported. Fonterra CEO Andrew Ferrier said in a statement that a number of options were available for Sanlu’s future, including an acquisition of the stake by a third party. In September, Fonterra wrote down the value of its stake by 69% to US$85 million due to the scandal’s effect on Sanlu’s brand. Last week, Wahaha, China’s largest beverage producer, said it may be interested in buying out Sanlu. Selling off the stake would free up Fonterra to make other investments in China’s dairy sector.