Saputo has secured control of Warrnambool Cheese and Butter Factory after winning the backing of shareholders representing over half the Australian dairy processor.

The Canadian dairy giant said last night (21 January) it held 52.702% of WCB after more of the company’s investors backed its offer.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Saputo passing the majority threshold is a blow to rival bidder Murray Goulburn, the Australian dairy co-op. Murray Goulburn holds a 17.7% stake in WCB. Reacting to the news, Murray Goulburn said it would “commercially assess” Saputo’s offer.

Now Saputo’s ownership of WCB has passed the 50% mark, the group will, as set out in its bid statement, raise its offer from A$9 per share to A$9.20 per share. Ultimately, if over investors representing over 90% of WCB shares back Saputo’s bid, the offer rises to A$9.60 a share.

Saputo’s offer has also automatically been extended by 14 days and will close on 4 February.

See Also:

The takeover battle for WCB was kicked off in September last year when Bega Cheese launched an offer for the Australian dairy firm. Bega subsequently dropped its bid to take control of WCB and accepted Saputo’s offer, tendering its 18.8% stake in the company.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Murray Goulburn’s offer is worth A$9.50-a-share. However, its bid is subject to competition approval. A competition hearing is scheduled for February but the regulator had suggested it could take “between three and six months” to make a final decision.

Among other significant stakeholders Kirin Holdings, the Japanese food and drinks group, holds a 9.99% stake in WCB. It made the investment soon after the takeover battle begun as a strategic move. WCB produces cheese sold under brands owned by Kirin’s Australian dairy arm Lion.