Unilever sells Ben & Jerry's Israeli business

STORY: Unilever has sold its Ben & Jerry's ice cream business in Israel aiming to smooth over a potential diplomatic uproar.

The company on Wednesday announced a deal had been made with a local distributor for an undisclosed sum.

The deal follows Ben & Jerry’s decision last year to stop selling its products in Israeli settlements.

The company responded to news of the deal with a Tweet saying -- as it did last year -- that it believed selling in the “Occupied Palestinian Territory” was inconsistent with its values.

Most countries consider Israel’s settlements on Palestinian land to be illegal, although Israel disputes this.

An international movement called Boycott, Divestment and Sanctions -- or BDS -- has sought to pressure Israel to abide by relevant international law.

Israel calls such actions anti-Semitic.

The foreign ministry spokesman hailed news of the Ben & Jerry’s deal as a victory.

"Today is great day that we celebrate a win over discrimination. Today is a day that we celebrate a win over the bigotry of the BDS. And today is also a day we celebrate a win over anti-Semitism."

Israel earlier had warned Unilever that it would face “severe consequences” for the Ben & Jerry’s sales boycott.

The consumer goods giant had said it would find a solution by the end of this year.

Under the new arrangement, Ben & Jerry's ice cream will be available to all consumers in Israel and the occupied West Bank.