increase font size
Fonterra says provisions of its licensing agreement with Bega are not impacted by its divestment process.
Fonterra says its ongoing legal battle with Australian processor Bega Cheese won’t change its divestment plans.
The co-operative also plans to appeal a ruling by the New South Wales Supreme Court on a case around Fonterra’s proposed divestment plan and its impact on a licencing agreement with Bega.
Fonterra argued that provisions of its licensing agreement with Bega are not impacted by the proposed divestment process. However, Bega, a potential bidder for Fonterra’s Oceania business, opposed Fonterra’s submission.
Bega Cheese issued a statement saying the NSW Supreme Court dismissed Fonterra’s proceedings and ordered the co-op to pay costs and it welcomed the decision.
In a statement, Fonterra’s managing director mergers & acquisitions and strategic divestments, Mike Cronin, says that the court “stated it is unable to make a determination at this stage, as there is not yet enough certainty about the outcome of the divestment process”.
“Our view has not changed as a result of the court decision and Fonterra intends to appeal this decision in the coming weeks.
“This does not change our divestment plans, and we continue to pursue both a trade sale and initial public offering (IPO) as potential divestment options.”
Fonterra’s Oceania business, which includes iconic Anchor, Mainland and Western Star brands, is attracting bidders. French company Lactalis and Bega Cheese are among them.
Bega executive chairman Barry Irvin says the company will always fight to protect its rights.
“We hope to work constructively with Fonterra Group on the sale of its Oceania business of which Bega Group is a natural acquirer and remains very interested in.”
Fonterra’s divestment plan includes either the sale of float of Fonterra Oceania and Fonterra Sri Lanka, which has 17 manufacturing sites around the world, including three in New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
If there was a silver lining in the tragedy that was Cyclone Gabrielle, for New Zealand Young Grower of the Year, Grace Fulford, it was the tremendous sense of community and seeing first-hand what good leadership looks like.
New research could help farmers prepare for a future where summer rainfall is increasingly unpredictable and where drought risk is rising, no matter what.
The first calves of a new crossbred dairy-beef offering are now on the ground at a Pamu (Landcorp) farm near Taupo.
Spinach is NZ's favourite leafy green, according to the Department of Statistics.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
