Federal Treasurer Joe Hockey has cleared the way for Canadian food giant Saputo to acquire Australian dairy processor Warrnambool Cheese and Butter.
No conditions have been placed on the treasurer’s approval.
“The future ownership of WBC is ultimately a matter for the shareholders but this decision provides certainty in relation to Saputo’s bid,” Mr Hockey said in a statement today.
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Warrnambool is the takeover target of three separate bidders – Saputo, Bega Cheese and Murray-Goulburn Co-operative.
Saputo is the suitor favoured by Warrnambool’s board.
The Canadian company so far has the best cash price ($8) on the table, although Bega is tipped to up its cash-and-scrip bid at some stage.
The Saputo bid prompted Japan’s Kirin Holdings, through its Lion Nathan arm, to take a strategic holding in Warrnambool while New Zealand dairy giant Fonterra has increased its stake in Bega.
