Danone had claimed $500m from Fonterra as a result of damage to its business as a result of Fonterra’s botulism scare.
Fonterra called a trading halt on its shares this morning while waiting for the announcement.
It said neither it nor Danone had prior knowledge of the decision.
Fonterra this morning said it would respond this afternoon but that it would take some time to understand the long and complex decision.
After Danone released the amount involved Fonterra said it could confirm the amount and would issue a market statement soon.
“Danone welcomes this arbitration decision as a guarantee that the lessons from the crisis will not be forgotten,” Danone said.
“Danone considers that this arbitration underscores the merit of its legal actions against Fonterra, including to champion the highest standards of food safety across the industry.”
In April 2014 Fonterra was fined by the Wellington District Court for breaching food safety regulations.
