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Financial Markets Authority dismisses Fonterra losses complaint

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The Financial Markets Authority (FMA) has dismissed complaints about the massive losses Fonterra incurred from writing down the value of its Chinese investments.

The financial performance of the Chinese assets contributed to Fonterra reporting significant losses in 2019. (File image)
Photo: RNZ / Rebekah Parsons-King

It said an investigation had shown nothing to justify any action after the writedown of $674 million in the Chinese assets in 2019.

“The FMA did not find evidence to support regulatory action, including litigation, under the Financial Markets Conduct Act,” the FMA said in a statement.

The complaint was brought by a Fonterra shareholder, Colin Armer.

Fonterra wrote off more than half of the original $754m investment in its 2015 joint venture partner Beingmate, resulting in a loss of $474m. It also wrote off about $200m from its valuation of fresh milk producer China Farms.

The financial performance of the Chinese assets…

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