Vegemite to return to Australian ownership under deal with US food giant Mondelez International.

By Brett Worthington

Vegemite is set to return to Australian ownership after dairy company Bega announced it would buy most of Mondelez International’s Australia and New Zealand grocery and cheese business.

Bega, in a note to the Australian Stock Exchange, said it would use bank debt to fund the $460 million acquisition.

The deal does not include Philadelphia products but will see Australian ownership of KRAFT branded products, including peanut butter, cheeses and mayonnaise.

The statement said the company would use “near-term corporate opportunities to pay down debt”.

“This acquisition will be value accretive in its own right, strategically important and company making,” executive chairman Barry Irvin said.

“These iconic brands alongside the Bega brand are strong building blocks to enable Bega Cheese to become a great consumer goods business.”

Mondelez is a global giant in the confectionary, food and beverage sector.

It owns some of the world’s most famous brands including Cadbury, Nabisco and Ritz.

More to come.

This post originally appeared on ABC News.