Bega Cheese - backed by billionaire Andrew Forrest - was amongst those interested in acquiring Fonterra's assets. Photo: Photo / AFP
Dairy giant Fonterra will appeal a court decision to dismiss a case regarding the use of trademarks by Australian dairy company Bega Cheese, as it looks for legal clarity in its plans to sell its consumer business.
Last week, the Supreme Court of New South Wales dismissed a case filed by Fonterra over trademark licensing agreements with Bega Cheese, saying it did not have jurisdiction to make a declaration on a deal which did not exist.
Fonterra has a long-standing agreement to make cheese in Australia under the Bega brand, and wanted a ruling that its divestment plans would not affect the existing trademark deal and trigger clauses which would allow Bega to end the deal.
On Tuesday, Fonterra said it would appeal the decision - which would have to be lodged at the state's Court of Appeal.
"Our view has not changed as a result of the court decision and Fonterra intends to appeal this decision in the coming weeks," its managing director M&A and strategic divestments Mike Cronin said.
"Our clear understanding is that the provisions of our licensing agreement with Bega are not impacted by the proposed divestment process."
Cronin said the latest developments did not change its plans to divest its consumer business.
"We continue to pursue both a trade sale and initial public offering (IPO) as potential divestment options," he said.
Bega Cheese - backed by billionaire Andrew Forrest - was amongst those interested in acquiring Fonterra's assets.
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