Saputo increases offer for Australian dairy processor to $505M

MONTREAL—The tug-of-war over the purchase of an Australian dairy processor continues, with Canada’s Saputo Inc. announcing it has boosted its bid for Warrnambool Cheese and Butter to AUD$505-million.

Locked in a battle to buy Warrnambool since early October, Saputo’s latest offer matches one made earlier this week by Australian firm Murray Goulburn Co-operative Co. Ltd., but the Montreal-based food giant called its bid “superior” due to a lack of conditions on the offer.

Announced Nov. 13, the offer by Murray Goulburn of $505-million, or AUD$9 per share, is subject to approval of Australia’s competition board because it would control more than 40 per cent of the national market by adding Warrnambool’s 10 per cent.

According to Saputo, the Warrnambool board has reaffirmed its unanimous support of Saputo’s all-cash offer.