Update on divestment of Consumer and associated businesses

Fonterra Co-operative Group Limited has announced that the dispute with Bega Cheese Limited in relation to the Bega licences has been resolved.

Bega agrees that the structure of the sale to Lactalis of Fonterra’s global Consumer and associated businesses 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.

As previously announced, Lactalis will pay Fonterra $375 million for the Bega licences in addition to the $3.845 billion base enterprise value, bringing the total proceeds for the sale of the Consumer and associated businesses to $4.22 billion.

Fonterra has agreed to pay Bega’s legal costs to resolve the dispute.