Fonterra has snapped up more shares in Bega Cheese, the Australian dairy processor.
The New Zealand dairy giant said today (29 November) it had lifted its stake from 6% to 9.7%.
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“Fonterra Co-operative Group Limited has lifted its shareholding in Australian dairy company Bega Cheese Limited to 9.06 per cent. Fonterra currently licenses the Bega brand from Bega and has a substantial supply contract for cheese,” the company said in a short statement to the New Zealand stock exchange.
When Fonterra announced its initial investment in Bega Cheese earlier this month, it said it was “important” it took part in any consolidation of Australia’s dairy sector.
“There has recently been a lot of consolidation activity in the Australian dairy industry. It is important that Fonterra participates and we have confidence in Bega and the strategy it is pursuing,” Fonterra CEO Theo Spierings said at the time.
Bega Cheese is one of three bidders for Australian dairy firm Warrnambool Cheese and Butter Factory.
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By GlobalDataTwo weeks ago, Bega Cheese made its “final” cash-and-shares offer for WCB, which valued the company at A$8.871 a share.
Yesterday, another Australian dairy firm, Murray Goulburn, tabled a bid worth A$9.50 a share.
Canadian dairy giant Saputo, which has the backing of WCB’s board, has pledged to offer A$9.20 a share – if it secures over half the company’s shares.
At present, Bega Cheese and Murray Goulburn both own 18% of WCB. Japan’s Kirin Holdings, the owner of Australian dairy group Lion, owns just under 10% of WCB, a stake it acquired as the battle for the business intensified last month.
