Saputo has become the leading shareholder in Australia’s oldest dairy company, Warrnambool Cheese & Butter (WCB). The Montreal-based dairy company now controls 20.1% of total shares, up from 17.9% as of December 24th to surpass the previous majority shareholder, Bega Cheese which controls 18.8%, followed by Murray Goulburn with 17.7%. The increase in controlled shares comes ahead of an expected extension of the January 10th deadline for its takeover bid for WCB of more than A$500 million. Saputo is offering A$9 per share if it does not get a majority of WCB stock, A$9.20 if it gets a simple majority, A$9.40 if it gets 75% majority, and A$9.60 if it get at least 90% of WCB shares. Murray Goulburn has also offered A$9.50per share if it acquires a majority of shares in this months-long takeover battle for WCB. The Australian Competition & Consumer Commission has voiced its concerns that if Murray Goulburn succeeds there is a possibility that the maneuver will lessen competition in the acquisition of raw milk within the country.
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