This marks the latest move in a bidding war for control of the 120-year-old dairy firm.
Last week, Canadian dairy giant Saputo lifted its takeover bid for Warrnambool Cheese to $8.00 a share. WCB has also received offers from the Australian dairy firms Bega Cheese and Murray Goulburn.
“Lion has enjoyed a close relationship with Warrnambool Cheese & Butter over many years and Warrnambool Cheese & Butter plays an important role in Lion’s cheese business,” Sydney-based Lion said in an emailed statement. “Lion considers this stake a continuation and strengthening of this relationship.”
According to a report in the Wall Street Journal, a person familiar with Lion’s thinking said the company doesn’t currently plan to make an offer for Warrnambool, but wanted influence in the takeover saga. Lion’s flagship cheese brands in Australia are Coon and Cracker Barrel. They are produced by Warrnambool, then cut and wrapped in an adjacent facility owned by Lion.
The day before Kirin made its move, the Victorian state government said that it wanted an Australian dairy company to win the bidding war for Warrnambool Cheese and Butter.
Victorian minister for agriculture Peter Walsh said the government would not be subsidising any takeover, but thinks the Australian Competition and Consumer Commission and the Foreign Investment Review Board should take into consideration that an all-Australian merger would be in the best interests of the dairy industry.
“It would actually be good to see them bulk up into being a powerhouse from a world point of view,” he said. “7% of the international dairy trade comes from Victoria out of a number of companies. Instead of having that spread across a number of potentially multinationals owning part of it, let’s be proud about having a real major player here in Victoria.”
Source: ABC News 24/WSJ
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