Australian dairy takeover edges closer
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.
Warrnambool said its directors would meet shortly to consider the Murray Goulburn offer. Its shares hit a record high of A$7.98. They have gained 75% since the Bega offer.
A Saputo spokeswoman said the company was considering its options, after the Murray Goulburn offer. Bega executive chairman, Barry Irvin, said the company, which is Warrnambool’s largest shareholder, with a stake of c.18%, would consider its position carefully.
