Argentina-based confectionery maker Arcor’s bid to take full control of local dairy giant La Serenísima has been rejected by majority owner Mastellone Hermanos.
Mastellone Hermanos, which currently holds 51% of the shares in La Serenísima, turned down the offer on the basis the bid was undervalued.
Arcor and France-headquartered dairy major Danone initially took a 25% stake in La Serenísima back in 2015 for around $60m through a business known as Bagley Argentina.
Danone set up Bagley Argentina in 1994 and Arcor is a shareholder, although the size of their respective shareholdings has not been disclosed.
Together, Arcor and Bagley Argentina then increased the holding in La Serenísima to around 49%.
Arcor is now seeking to acquire the remaining stake. Danone declined to comment when contacted by Just Food on the existing nature of the share partnership between the two businesses in La Serenísima.
This publication understands that an option agreement gives the right to take full control of La Serenísima, an option that has to be exercised in 2025.
In a letter of intent signed by Arcor vice president Mario Enrique Pagani, sent to the Argentine Stock Exchange (Comisión Nacional de Valores or CNV) this week, the confectionery company sought to exercise the option for the remaining 51.323% share of Mastellone Hermanos.
However, Mastellone Hermanos’ president Carlos Agote then rejected the bid.
In a filing with the CNV, Agote said: "After receiving the notification, the sellers' representatives have informed the company that they will challenge the price per share indicated in the notice, considering it inconsistent with the guidelines established in the agreement."
An agreement dating back to the initial stake purchase in 2015, gives Arcor and Danone, effectively Bagley Argentina, 30 days to contest Mastellone’s decision.
Danone’s role in the takeover transaction has also not been disclosed nor has the price offered for the remaining stake. All three companies declined to comment when contacted by Just Food.
A full takeover of Mastellone Hermanos would see Arcor elevated to a major dairy company in Argentina, competing with the likes of Canada-headquartered Saputo and France-based Savencia Fromage & Dairy.
Meanwhile, Argentine dairy cooperative SanCor is going through insolvency proceedings.
La Serenísima is Mastellone Hermanos’ signature brand consisting of powdered milk, ricotta cheese, butter, cream, yogurts and desserts.
In 2024, Mastellone Hermanos reported net sales of $1.3bn. It owns nine manufacturing plants in Argentina and employs 3,500 in the local market.
The La Serenísima brand is exported to the likes of Brazil, the US and Mexico, Russia, Chile, Uruguay, Bolivia and Perú.
Arcor, meanwhile, is a food and agri-food business that generated sales last year of $3.8bn. It has 49 facilities around the globe and 21,000 employees.
