Saputo Inc. (SAP), Canada’s largest dairy processor, agreed to pay about C$378 million ($366 million) for Warrnambool Cheese and Butter Factory Co., bettering a rejected bid by Bega Cheese Ltd. (BGA)
Saputo offered A$7 cash a share for the maker of Sungold and Warrnambool cheddar, according to a statement from the Montreal-based company. The deal, recommended by Warrnambool’s board, is priced at 8.4 percent more than Warrnambool’s close of A$6.46 yesterday.
The Canadian company’s bid tops a cash and share offer for the Warrnambool that operates two dairy processing plants in southeastern Australia by Bega Cheese, its largest shareholder.
Saputo is planning on “increasing existing capacity or building additional capacity,” as it seeks to tap rising demand for dairy products in Asia, Warrnambool Chairman Terry Richardson said in a separate statement.
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