Fonterra has confirmed the finalisation of the strategic partnership with New Zealand’s Exchange (NZX) and the European Energy Exchange (EEX) to each take ownership stakes in Global Dairy Trade (GDT) alongside the Co-op.
As announced in February 2022, the partnership was subject to the approval of Boards, clearance from relevant competition law authorities, and finalisation of transaction documentation. With those approvals now received, Fonterra, NZX and EEX each hold an equal one-third (33.33%) shareholding in the global dairy auction platform GDT as of 30 June 2022.
Said Marc Rivers, CFO, Fonterra: “The move to a broader ownership structure marks the next step in the evolution of GDT – giving it a presence in prominent international dairy producing regions, with greater participation expected at GDT events.
“It will bring more participants and transactions, stimulating further growth of risk management contracts available on financial trading platforms. “This creates opportunities for the growth of financial tools to better manage price volatility – which is something many industry participants, from farmers through to customers, are exposed to.”
Added GDT Chief Executive Dr Eric Hansen: “The GDT team is looking forward to working with EEX and NZX as strategic partners with strong interests in dairy and established reputations as regulated exchanges to enhance GDT’s role as an independent, neutral and transparent price discovery platform.”
“At a time of geopolitical and macroeconomic instability, GDT’s vision to expand its global reach and provide better transparency in dairy commodity prices, is more important than ever for dairy market stakeholders,” says Mr Peterson. Fonterra Co-operative Group “It aligns with NZX’s strategy of growing capital markets, connecting with more businesses, and creating greater value for shareholders and investors. In GDT, NZX is excited to be working with the best partners to achieve this.”
Concluded Dr Tobias Paulun, Chief Strategy Officer, EEX: “Being a shareholder of GDT fits perfectly to our strategy of taking asset classes which we already successfully serve to a global dimension. “EEX looks forward to supporting GDT’s growth vision with NZX and Fonterra with the aim to create value for the global dairy value chain by further improving price discovery and price risk management instruments.” For more visit Fonterra.com
