Montreal-based Saputo Inc. is in a three way bidding war after Australian dairy giant Murray Goulburn made a cash offer that is 7% higher than what Saputo offered for Australian Warrnambool Cheese & Butter. Earlier this month Saputo offered AUD$7 per share for Australian Warrnambool Cheese & Butter as the company has long been seeking to enter the Oceania market to use as a base to access market share in Asia. Murray Goulburn attempted to buy Warrnambool in 2009 and currently owns approximately 18% of its shares. Bega Cheese also currently owns approximately 18% of Warrnambool shares and has offered a cash and share bid of AUD$370 million or AUD$6.30 per share. Both companies are promoting their Australian roots to counter the offer made by Saputo. If Murray Goulburn is successful, the two Australian dairies would process 4.5 billion liters of milk representing 41% of the milk market share in Australia. An increased bid from Saputo is expected next week.
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