Tag: MGC

It’s all over. Murray Goulburn unitholders yesterday approved the $1.0 billion takeover of the co-operative by Canada’s Saputo Inc.

Saputo’s proposed acquisition of Murray Goulburn assets will go ahead after the ACCC gave the deal the tick of approval following its acceptance of a court-enforceable undertaking from Saputo to divest Murray Goulburn’s Koroit plant in southwestern Victoria.

Well, that was no surprise. Saputo, the Canadian dairy hoping to buy Australian co-operative Murray Goulburn, is now looking to sell the dairy factory in southwestern Victoria that is a sticking point to ACCC approval for the $1.1 billion deal.

While Montreal-based Saputo’s $1.3 billion acquisition of distressed rival Murray Goulburn has stalled after the competition regulator revealed concerns over one plant in western Victoria, the obstacle looks easy to overcome – sell the milk plant in question

The hard times (all self-inflicted) continue for Australia’s largest dairy group, Murray Goulburn with the group reporting a net loss for the year to June of $371 million and revealing that the company has fielded some approaches from tyre kickers.

Talk persists that Murray Goulburn could try and delist its funding entity, MG Unit Trust as part of a restructuring designed to remove market pressure on the country’s biggest dairy processor as it struggles to emerge from last year’s debacle.

Murray Goulburn securities jumped 5% yesterday after some good news from the embattled dairy processor. The shares ended at 63.5 cents, a bit of respite from the selling pressure of the past few weeks.

A day after Murray Goulburn surprised the market with a dire warning that it will need more deep cost cuts to get the benefits of a big restructuring program, investors are starting to wonder if the group will survive in its current form.

Securities in, Murray Goulburn fell to an all time low yesterday after the struggling dairy group warned that without another successful round of cost cuts, it may not be able to meet the farmgate milk price indicated to dairy farmers for the year ahead.

Pain at Australia’s biggest milk producer, Murray Goulburn (MGC) for employees who are taking the brunt of the hit from last year’s managerial incompetence under the old board and management regime headed up by former CEO, Gary Helou.

Troubled milk dairy giant, Murray Goulburn (MGC) is reaping the unwanted rewards of treating its farmers harshly earlier this year by slashing their milk prices and forcing them to repay overpayments.

More bad news for many dairy farmers from Murray Goulburn – the struggling dairy group, the country’s largest, has cut its estimate for 2016-17 milk prices even lower.

Units in the listed Murray Goulburn unit trust plunged 42% (from last Thursday’s close of $2.14) after the company yesterday downgraded profit and revealed CEO Gary Helou would be leaving the company.

And watch for a trading update today (not yesterday) from Murray Goulburn, Australia’s biggest dairy processor, to trigger a round of jitters in the dairy sector companies – Bega, A2 Bellamy, Blackmores and associated companies.

Is the Australian dairy industry about to head down the same path of weak revenues and earnings that the huge Kiwi industry is already travelling?

The recession in the global dairy industry punched a big hole in the half year earnings of Australia’s biggest milk processor, Murray Goulburn.

Australia’s biggest farming co-operative, Murray Goulburn (MGC), has warned it may cut the milk price it pays to its dairy farmers below the crucial $6 a kilo level following the slump in global dairy prices.