Murray Goulburn (MG) has said it will continue to battle on in its bid to take over Warrnambool Cheese and Butter (WCB) despite Canadian contender Saputo bettering its offer.
Saputo has upped its offer for WCB shareholders to $449 million, placing ahead of the recent $420 offer from MG. MG noted, however, that Saputo’s offer, which is subject to approval from the Foreign Investment Review Board, continued to be subject to “substantial conditionality”.
In contrast, the MG and Bega offers are subject to approval from the Australian Competition and Consumer Commission.
According to MG, however, its offer will bring many benefits for WCB shareholders, WCB suppliers, the Warrnambool community and the Australian dairy industry.
MG also said that resolution of the future ownership of WCB will be a long process, and that WCB shareholders should not act prematurely in relation to giving up control of their shareholdings.
“MG remains committed to acquiring WCB and to satisfying all conditions associated with its offer as quickly as possible. MG presently owns 17.7 per cent of WCB,” the company said.
“MG believes it to be reasonable and in the national interest that Saputo’s Foreign Investment Review Board (FIRB) application to acquire WCB is not resolved until the public benefits of MG’s proposed acquisition of WCB have been given full consideration - pursuant to MG’s application for authorisation to the Australian Competition Tribunal to acquire WCB,” the company said.
