Fonterra resolves Bega dispute, sells licences for $375m

Fonterra has announced the resolution of a dispute with Bega Cheese regarding the Bega licences.

Bega has agreed that the sale structure 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.

Fonterra will receive $375 million from Lactalis for the Bega licences, in addition to the $3.845 billion base enterprise value.

This brings the total proceeds from the sale of the consumer and associated businesses to $4.22 billion.

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