A Canadian dairy company has offered $1.3 billion to buy Australian milk processor Murray Goulburn (MG) — but the deal still needs shareholder and regulator approval to go ahead.
MG revealed that Saputo would acquire all of its assets and operating liabilities at its Annual General Meeting in Melbourne on Friday 27 October 2017.
The deal, which has the unanimous support of MG's board, also requires approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
Suppliers had arrived at the meeting eager to hear about the company's plans to sell some or all of their co-operative to rival milk processors, or a foreign buyer. They were also keen to hear how MG intended to plug a serious leakage of milk supply caused by farmers deserting MG in search of higher milk prices.
MG has gone through a tough couple of years because of a downturn in dairy prices, and its former managers have been under investigation for their handling of the crisis.
Its biggest rival, New Zealand-owned Fonterra, had previously confirmed it had made a bid for the company.
(From ABC RUral - 27 October 2017)