Fonterra has acquired 100% ownership of rural supplies chain RD1.
The dairy giant sold a 50% stake in RD1 to Australian rural supplies chain Landmark, owned by AWB Ltd, in 2006.
As part of that agreement, Fonterra had a pre-emptive right to buy back RD1 if Landmark or AWB were sold. That opportunity arose in December 2010, when Canadian company Agrium bought AWB.
Fonterra was excited at the prospect of RD1 "rejoining the fold", Fonterra chief executive Andrew Ferrier said.
RD1 was formed in 2002 with the consolidation of the trading store networks of both the New Zealand Dairy Group and Kiwi Co-operative Dairies Ltd.
Since 2006, revenues had increased from $394 million to $741 million.
