Dairy products maker Warrnambool Cheese and Butter Factory Company Holdings Ltd
(ASX:WCB) has welcomed a decision by Murray Goulburn to withdraw its takeover offer for the company.
In a letter to suppliers, Murray Goulburn says it does not intend to progress with the proposed merger at this time and has withdrawn its application for clearance to the Australian Competition and Consumer Commission.
Warrnambool Cheese chairman, Frank Davis, says the company has long maintained that a takeover by Murray Goulburn is not in the best interests of the company, its shareholders and suppliers.
Mr Davis says the company looks forward now to building the business and taking advantage of the growth opportunities available to Warrnambool as an independent company.
Warrnambool Cheese rejected Murray Goulburn’s offer on the basis of value, as well as the highly conditional nature of the proposal and the associated uncertainty of completion.
In April, the ACCC sought further information from Warrnambool relating to competition issues surrounding the proposed merger.
Warrnambool Cheese and Butter Factory Company Holdings fell into the red in fiscal 09 after a profit the year before.
