Fellow milk processor Lion sold its 10 per cent stake in WCB to Saputo for $9.05 a share last week, giving Saputo ownership of 98.86 per cent of the Western Victorian dairy manufacturer.
On Monday Saputo sent letters to remaining shareholders informing them of the compulsory acquisition.
Also on Monday, Bega Cheese told the Australian Securities Exchange it would sell one of its spray driers at Tatura and its infant formula finishing plant at Derrimut to Mead Johnson Nutrition for $200 million.
As part of the deal Bega Cheese secured a 10-year service and access agreement with Mead Johnson for the spray drier and finishing plant.
Bega Cheese executive chairman Barry Irvin said the deal was “strategically and financially important for Bega Cheese”. “It secures revenue streams from these assets and releases capital which will be used to fund our recent purchase of Mondelez Australian grocery business, including vegemite.”
In December Murray Goulburn and Mead Johnson terminated negotiations for the supply of nutritional products. About a year ago, MG announced it had entered into a “framework agreement” to establish a strategic supply alliance with Mead Johnson Nutrition, a global paediatric nutrition company.
Meanwhile, online auction Global Dairy Trade dropped 3.2 per cent last week, to $US3474 a tonne, with declines in cheddar, skim and whole milk powder.
Dairy Australia analyst John Droppert said the result showed market recovery was “unsteady”, reflecting the news there would be more milk out of New Zealand than previously thought.
Source: WeeklyTimes
Link: http://www.weeklytimesnow.com.au/agribusiness/dairy/saputo-moves-in-on-last-of-warrnambool-cheese-and-butter-shares/news-story/de8c5af9f78eb409e125ea628c792dd9