FrieslandCampina secures major deal to boost market position in Indonesia

FrieslandCampina will cooperate with the company Ultrajaya in Indonesia. This is the largest player in the 'ready to drink' segment in the Indonesian dairy market. With this deal, the Dutch dairy giant is increasing its market share in Indonesia. The structure has been set up in such a way that Frisian Flag Indonesia (FFI) is acquired by Ultrajaya, after which FrieslandCampina acquires a controlling interest in Ultrajaya. This may involve several hundred million, but FrieslandCampina is not making any statements about that. PT Ultrajaya Milk Industry Tbk, as Ultrajaya is officially called, is a listed family business in Bandung. According to public sources, it is more than 80% owned by the Prawirawidjaja family. The remaining shares are freely tradable. In 2025, the company posted revenue of around €430 million and net profit of €66 million. Although FrieslandCampina is required to make an offer for all outstanding shares after the agreement is completed, the Prawirawidjaja family will remain an important minority shareholder in the long term. The company will also remain listed on the stock exchange. How many shares FrieslandCampina wants to acquire at a minimum is not disclosed. The company reportedly has a total market value of around €770 million. Deal can strengthen FrieslandCampina's position Although the partial acquisition can put a considerable strain on FrieslandCampina's financial position, credit rating agency Fitch does not assess the move as negative. On the contrary, Fitch believes that it can actually strengthen FrieslandCampina's position, provided the company succeeds in realizing the intended returns. FFI's collaboration with Ultrajaya has the advantage that FFI gains access to Ultrajaya's broader network, which serves consumers throughout the Indonesian archipelago. Both companies will continue to operate as independent businesses, with their own brands, portfolios and organizations. They will work more closely together to create value in the long term. The members' council of FrieslandCampina cooperative has already approved the agreement. Completion of the transaction still depends on the usual approvals, including those of Ultrajaya's shareholders' meeting and the competent authorities in Indonesia.