Canada's Saputo on verge of taking over Warrnambool Cheese & Butter

http://www.theguardian.com/world/2014/jan/16/saputo-on-verge-winning-warrnambool

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Canadian company Saputo is on the verge of winning Australia’s long-running dairy takeover battle after its rival Bega Cheese agreed to sell its 18.8% stake in Warrnambool Cheese & Butter.

The $9-a-share deal will give Saputo around 45% of WCB, just short of the 50% it needs to take control of the Victorian dairy producer.

Bega kicked off the fight for WCB in September but pulled out after the entry of Saputo, one of the world’s largest dairy processors, and Australian rival Murray Goulburn pushed the bidding higher.

Murray Goulburn still has its offer of $9.50 a share on the table but it is waiting for approval from the competition authorities.

Many expect MG, which has a 17.7% stake in WCB, will now be forced to concede defeat to the Canadians and sell up.

Bega Cheese executive chairman Barry Irvin said: “Bega Cheese’s takeover offer was the catalyst for a process which has highlighted the value of the Australian dairy industry, a rerating of Bega Cheese’s share price and a substantial profit.

“We wish Saputo well with their investment and look forward to working with them for the betterment of the Australian dairy industry.

“The objective of our takeover offer for Warrnambool Cheese and Butter was always focused on improving returns for our shareholders and our dairy farmer suppliers.

“While our bid was not successful our focus remains the same. The significant profit realised by the sale of our WCB holding will add to our capacity to pursue a number of strategic business opportunities which will ensure Bega Cheese’s reputation for being a leader in manufacturing milk and delivering stable and growing returns to shareholders.’’

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