The a2 Milk Company Limited Resolves Disputes with Synlait Milk Limited

The a2 Milk Company Limited (ASX: A2M) has reached a conditional settlement with Synlait Milk Limited (ASX: SM1) concerning multiple disputes, including exclusivity and pricing issues. Synlait has accepted the cancellation of its exclusive manufacturing and supply rights for a2MC’s infant milk formula (IMF) products, effective January 1, 2025. Despite the cancellation, the Nutritional Products Manufacturing and Supply Agreement (NPMSA) remains active, with the possibility of termination after three years. As part of the settlement, a2MC will make a one-off payment of NZ$24.75 million to Synlait, resolving the pricing disputes. The settlement is contingent on Synlait's equity raise and refinancing of its banking facilities. This agreement underscores the strategic importance of Synlait's Dunsandel site to a2MC.

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