Saputo’s rival in the bidding battle for control of Warnambool Cheese & Butter Ltd. of Australia has decided to sell its shares to Saputo.
That will bring Saputo’s ownership to about 75 per cent of the company’s shares.
Rival Murray Goulburn had accumulated 17.7 per cent of the shares and said it’s selling to Saputo for about $93 million Australian.
The sale came right on Saputo’s deadline of Wednesday to accept its offer to buy Warnambool shares for $9.20 Australian to gain more than 50 per cent ownership, $9.40 if it gains 75 per cent or more and $9.60 if it gains more than 90 per cent of the shares.
Saputo wants the Australian company as a launching pad into the Chinese market.
This is really dismal news for Canadians. Our supply management system provides Saputo with a steady flow of profits, but those profits are being invested in Australia.
And supply management also means Canadians have no chance of sharing in the rapidly-increasing dairy sales to China.