Australian dairy takeover edges closer

Warrnambool Cheese and Butter Factory Company Holdings Ltd’s second-largest shareholder launched a A$420m (c.€300m) bid for the Australian dairy company, trumping two previous offers and fanning speculation it could command an even higher price.

The battle for Warrnambool heated up on the same day as China’s Shanghai Pengxin made an offer for more dairy farms in New Zealand, underscoring robust demand for Australasian dairy and farm assets, as companies ramp up their exposure to Asia’s growing appetite for milk, cheese, and other food products.

Murray Goulburn Co-operative Co Ltd, which owns 17% of Warrnambool, is offering A$7.50 (€5.30) per share in cash. That is more than a A$7(€4.90)-per-share bid from Canada’s Saputo Inc (SAP.TO), which, in turn, had bested a A$5.78(€4)-per-share offer from Australia’s Bega Cheese Ltd in September.