ACM withdraws legal action

“ACM, Fonterra and (field officer) Glenn Murrells understand and comply with all of their obligations with respect to dealing with current and prospective milk suppliers,” the statement said.

“ACM acknowledges that Fonterra and Mr Murrells deny that they have breached their obligations with respect to dealing with current and prospective milk suppliers, and on that basis, ACM has withdrawn its claims against Fonterra and Mr Murrells, and agreed to the dismissal of its proceeding.”

Neither company wished to make any further public comment.

In documents lodged with the Supreme Court, ACM had claimed Fonterra was approaching its suppliers and encouraging them to leave to join Fonterra.

ACM sought an injunction to prevent Fonterra from approaching its suppliers.

Fonterra denied the allegations made by ACM.