National Foods, the Australian food group, remains locked in talks with local dairy firm Warrnambool Cheese and Butter Factory (WCB) over the fate of their planned cheese venture.
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The two sides first struck a deal on the venture last August after National Foods secured the A$910m (US$685.8m) takeover of Dairy Farmers.
However, the fate of the 50:50 venture remains unclear after WCB pulled a rights issue drawn up to fund its stake in the business last month. The firm’s managing director has also left the business following a U-turn on the prices it pays its milk suppliers.
A spokesman for National Foods refused to be drawn on the nature of the company’s discussions with WCB or whether the equity make-up of the venture could change.
“We are currently working through a range of options for [the everyday cheese] business, including a joint venture with Warrnambool Cheese and Butter,” the National Foods spokesman told just-food today (15 May). “The everyday cheese business is an important part of National Foods.”
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By GlobalDataWCB told just-food yesterday that changes to the structure of the venture were a “possibility”.
National Foods is owned by Japanese conglomerate Kirin Holdings. Earlier this week, Kirin reported that its first-quarter losses widened on the back of one-off securities and impairment charges.
