Warrnambool Cheese & Butter believes the company trying to buy it, Murray Goulburn, is unlikely to achieve the all-clear for its $180 million takeover from the competition regulator this week.
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According to The Australian Financial Review, Warrnambool, which has twice rejected Murray Goulburn's advances, suspects the Australian Competition and Consumer Commission will release a statement of issues highlighting areas of concern rather than issuing a green or red light on Thursday.
This would delay the ACCC's final decision until at least the end of May.
The timing is sensitive for Murray Goulburn because it has spent almost $18 million acquiring a 9.9 per cent stake in Warrnambool and is debating whether to increase that stake to 15 per cent when a cap that restricts shareholders to 10 per cent rises on May 26.
If the ACCC rejects Murray Goulburn's application for merger clearance, Murray is unlikely to increase its Warrnambool stake to the 15 per cent threshold and will have to consider selling the shares, possibly to a suitor such as Canada's Saputo, which approached Warrnambool in December, according to a source.
