Canadian dairy giant Saputo has confirmed it's still trying to sell MG Trading stores.
Saputo acquired the 25 stores, eight fertiliser depots and a bulk feed business, servicing the dairy industry in Victoria, NSW and Tasmania, when it took over Murray-Goulburn, nearly 12 months ago.
A Saputo spokesman said the company remained convinced MG Trading represented a good business and was valuable to the farming community.
"Such trading stores are, however, not core to Saputo and finding a suitable and strong buyer is our objective," the spokesman said.
"At this time, however, no suitable solution has been finalised, therefore MG Trading will continue to operate, as usual."
UK purchase
Meanwhile, Saputo has announced it's buying British milk processor, Dairy Crest, for about £1 billion pounds.
It will be the Canadian processors first move into Europe.
Saputo has announced the purchase would be financed through funds drawn on a new bank term loan facility and carried out through a share offer.
Headquartered in the United Kingdom, Dairy Crest is a large dairy company, which manufactures and markets cheese, butters, spreads and oils under leading British brands, such as Cathedral City, Clover, Country Life and Frylight
It employs about 1100 people in seven locations across the United Kingdom.
Saputo has announced the purchase would be made through a share offer, with the Dairy Crest board unanimously recommending it be accepted.
For the six months ended September 30, 2018, Dairy Crest had revenues of about £224.9 million.
In a statement, Saputo said the purchase would allow the company to expand its international presence and enter the UK market, by acquiring and investing in a well-established and successful industry player.
"Dairy Crest is an attractive platform which fits with Saputo's growth strategy," the statement said.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
