FDBusiness.com

Following a change in ownership of Brazil’s leading dairy company Vigor, Arla Foods has decided to divest its 8% share in the company with immediate effect. Vigor has been sold by majority shareholder JBS to Mexican dairy company Grupo Lala. In connection with this transaction, Arla Foods has sold its stake in Vigor to Lala.

“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,” explains Tim Ørting Jørgensen, executive vice president in Arla Foods, who is responsible for Arla’s international business.

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.

Further terms and conditions of the transaction are not disclosed.