Lion is positioning the stake as a way to secure its WCB supply partnership.

Lion enters the WCB fray

30 October 2013

Lion has weighed into the takeover battle for Warrnambool Cheese and Butter Factory (WCB) by buying a 10 per cent stake in the company.

However, the Japanese-owned company is not expected to join Bega Cheese, Murray Goulburn dairy co-operative and Canadian dairy company Saputo in the takeover battle for WCB.

Lion already owns a number of dairy brands including Dairy Farmers, PURA, COON and Yoplait, and WCB supplies much of the cheese that Lion sells under its own brands.

Lion is positioning the move as a way to secure this partnership, and the company said yesterday that the stake was about reinforcing its existing ties with WCB.

“Lion has enjoyed a close relationship with WCB over many years and WCB plays an important role in Lion’s cheese business,” the company said.

“Lion considers this stake a continuation and strengthening of this relationship.”

The WCB takeover battled heated up last week when Saputo boosted its offer to $8.00 per WCB share, valuing the company $449 million.