Murray-Goulburn abandons WCB takeover

Posted by Nicole Eckersley on 3rd June 2010

warnambool-cheese-and-butter.jpgDairy giant Murray Goulburn has abandoned its attempt to acquire Warrnambool Cheese and Butter, after several months of rejected offers.

A letter to suppliers yesterday said that Murray Goulburn “does not intend to progress with the proposed merger at this time and has withdrawn its application for clearance to the ACCC”.

A statement from the WCB board welcomed the decision by Murray Goulburn.

“We have long maintained a takeover of WCB by MG was not in the best interests of WCB, our shareholders and suppliers. We look forward now to building our business and taking advantage of the growth opportunities available to us as an independent company.”

WCB rejected offers of up to $4.50 per share from Murray Goulburn, which they believed to be of insufficient value and too conditional.

Murray Goulburn will retain its 10% stake in WCB.