Rapid globalization of the dairy sector continues as Saputo grabs Australian cooperative Murray Goulburn
Canadian based Saputo has offered A$1.3billion to buy Australian dairy cooperative Murray Goulburn. The proposed sale has been cautiously welcomed by IUF affiliate, the NUW, which represents workers in the company.
The NUW has been fighting factory closures and job losses since the cooperative announced in May it would close 3 factories and dismiss 360 staff.
Two years ago Murray Goulburn rasied $500 million following a partial listing on the Australian stock exchange but in April 2016 the company slashed farmgate milk prices and demanded farmers pay back some of what they had already been paid. With rival Fonterra also slashing prices a crisis was triggered in the Australian dairy industry.
The deal is subject to shareholder approval and regulatory consent.