Fonterra Resolves Dispute Over Bega Licenses

Fonterra Co-operative Group Limited has successfully resolved its dispute with Bega Cheese Limited concerning the Bega licences. Bega has agreed that Fonterra’s structural sale to Lactalis of its global Consumer and associated businesses does not represent a change of control under these licenses. This resolution facilitates the inclusion of Bega licences within Fonterra’s Australian business in the divestiture. Lactalis will pay $375 million for the Bega licences, in addition to the $3.845 billion base enterprise value, bringing total proceeds to $4.22 billion. Moreover, Fonterra has consented to cover Bega’s legal costs to conclude the matter.