Will MGC-Coles 10 Year Contract End Saputo Deal?
Why? The Coles Contract is a loss making exercise for Coles and especially Murray Goulburn!
Has been for years.
To make Saputo's A$1.31bn bid financially viable, Lino Saputo Jnr must put a nuke bomb under the MGC-Coles 10 year cheap milk contract.
If not, Saputo shareholders (TSE:SAP) will experience same fate as Murray Goulburn (ASX:MGC)! Worse than death. Share Price tanking year after year.
But will Coles buckle under? Why would Coles? They have the best (for them) long term supplier contract negotiated in Australian corporate history! MGC got screwed to eternity.
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If Lino Saputo Jnr fails, then Murray Goulburn shareholders and dairy farmers-if they vote for the Saputo deal- will continue their personal very costly painful journey to oblivion.
It's that simple and obvious, at least in a non-blind impartial Aussie in OZ.
In Canada? To SAP shareholders?
And, Lino, that's just for starters.
PS: My bet is that Lino Saputo Jnr, and Saputo Board, hasn't seen the Coles "Death By Multi-Million Dollar Cuts Per Month" Contract?
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