Fonterra resolves Bega dispute, sells for $4.22bn

Fonterra has announced the resolution of its dispute with Bega Cheese in relation to the Bega licences.

Bega has agreed that the sale of Fonterra's global consumer and associated businesses to Lactalis does not constitute a change of control under the Bega licences.

As a result, the Bega licences held by Fonterra's Australian business will be included in the divestment.

The total proceeds from the sale of the consumer and associated businesses will now amount to $4.22 billion, with Lactalis paying Fonterra $375m for the Bega licences, in addition to the $3.845b base enterprise value.

Fonterra has also agreed to cover Bega's legal costs in resolving the dispute.