Murray Goulburn top Saputo’s WCB takeover offer with $515m bid

The Australian dairy cooperative’s conditional offer, which is worth approximately AU$550m (US$515m), topped the all-cash 100% takeover bid by Canadian dairy giant Saputo for WCB of AU$8.00 (US$7.70) per share.

Saputo’s AU$8.00 per share offer, which was tabled on 24 September, was the last to be given backing by WCB’s board of directors.

According to Victoria-based Murray Goulburn, the latest offer underscores its “commitment to acquiring WCB.”​

Meanwhile, Australian cheese manufacturer, Bega Cheese, has since issued its second and “final offer” for WCB. The unconditional offer, which involves 1.5 Bega Cheese shares and AU$2.00 (US$1.87) per WCB share, is worth AU$8.87 (US$8.27) per share, according to Bega Cheese.

Responding to both offers, WCB board of directors urged company shareholders to “take no action”​ until the bids have been assessed.

“Ample time” to decide​

WCB manufactures a wide range of dairy products, including fresh milk, cheese, butter, milk powder, and whey protein concentrate, for the Australian market and for export.

In statements announcing their revised bids, both firms made promises regarding the future of WCB.

Murray Goulburn, which is Australia’s largest dairy cooperative, claimed that opting for its offer would be “very positive for MG, WCB, and its shareholders, WCB suppliers, WCB employees, local communities and the Australian dairy industry.”​

“The combination of MG and WCB is also the only option available that delivers an Australian-owned and operated company with the scale, capacity, strength and momentum to service global growth opportunities, returning profits to dairy farmers and their communities,” ​the Murray Goulburn statement added.

Bega Cheese meanwhile chose to reassure WCB shareholders about operations and the job security of more than 420 workers at the company.

“Bega Cheese intends to preserve the Warrnambool Cheese & Butter name, operating sites and brands and has no intention to close Warrnambool Cheese & Butter head office or the Allansford or Mil Lel sites,”​ it said.