Bega Cheese ‘open-minded’ on Murray Goulburn purchase

Bega Cheese ‘open-minded’ on Murray Goulburn purchase
SIMONE SMITH, The Weekly Times
July 12, 2017 12:00am
BEGA Cheese has refused to rule out speculation it is looking to buy dairy giant Murray Goulburn or part of it.
This comes as the owner of Warrnambool Cheese and Butter, Saputo chief executive Lino Saputo Jr, would not be drawn on buying any Murray Goulburn assets.
But he said if dairy assets become available, especially in Australia, the business would take a look at them.

Barry Irvin. Picture: Aaron Francis
Bega Cheese executive chairman Barry Irvin said he had an open mind for “those sorts” of discussions, when asked if Bega would consider pursuing Murray Goulburn.
“I’ve been saying for a long time I think consolidation would help the Australian dairy industry and I think a really strong Australian-owned dairy company would be a great thing,” he said.
“So of course if that’s something that is being speculated or talked about. I would always have an open mind for those sorts of discussions.”
Bega Cheese hopes to raise $160 million as part of its current capital raising.
It has raised $122.5 million from institutional shareholders, and small shareholders have until the end of the month to lodge their interest in extra shares in a bid by the company to raise another $37.5 million.
This move has dairy farmers speculating about Bega’s future plans, although Bega said it would pay down debt after it bought US grocery business Mondelez International’s Australasian business in January.
A Murray Goulburn spokesman said the company did not comment on market rumours or speculation and pointed to its business’ review last month, that including its profit-sharing mechanism and capital structure.
Murray Goulburn is a co-operative and has listed units.
Murray Goulburn will close three processing facilities during the next year to improve “operating efficiency”.

In February it posted a $31.9 million loss for the first half of the financial year.
Mr Saputo said he was “not prepared to throw in the towel for MG” or speculate on its future.
“I think, like a lot of entities around the world, there are some difficult periods and then somewhere along the line, if decisions are taken appropriately, the sun will rise.”