It has been reported that the merger of Argentinean dairy companies SanCor and Milkaut, which would have created the country’s largest dairy company, will not go ahead.
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The primary obstacle to the merger is the reluctance of the IFC, financial branch of the World Bank, for the private sector to donate US$211m to fund the restrucuring the two companies would need to undertake to merge.
Milkaut is also known to be suffering internal problems, said SABI (South American Business Information), and its share structure is in flux. The group recently had to delay interest repayments on its US$2m debt, and it has closed some of its plants.
