Mexican Lala Group ends litigation with Lactalis and allows it to acquire Brazilian producer Itambe

Lactalis of France and Mexico’s Grupo Lala reached an agreement to put an end to arbitration and legal proceedings that they maintained for the market in Latin America, which allowed the French group to complete the acquisition of Brazilian producer Itambe Alimentos, informed the Lactalis CEO for Latin America, Patrick Sauvageot.

In an interview with Reuters, Sauvageot said Lactalis and Lala ended litigation in Brazil over the acquisition of Itambe and the use of certain brands in Mexico.

Lactalis concluded on Wednesday the acquisition of Grupo Lala’s stake in Itambe and will now process 2,300 million liters (607 million gallons) of milk per year in Brazil.

Itambe has five factories, of which four are located in Minas Gerais and one in Goiania.

Lactalis expects its revenues in the country to reach 8,000 million reais (US $2.130 billion). The conclusion of the agreement depended on the outcome of the arbitration at the Brazil-Canada Chamber of Commerce that began approximately one year ago.

Lactalis, global owner of brands such as Parmalat, Galbani and Président, agreed to pay around US $600 million to acquire Itambe in December 2017, less than six months after Lala acquired Vigor, which owned 50% of Itambe.

The agreement with Itambé will make Brazil the fifth largest market for Lactalis.

Before Itambe, Lactalis had already acquired the Brazilian cheese producer Balkis and some units of dairy products owned by BRF.

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