Arcor's Bid for La Serenísima Rebuffed by Mastellone Hermanos
Source: dairynews.today
Argentina-based Arcor's attempt to acquire full control of dairy leader La Serenísima has been declined by Mastellone Hermanos, citing the bid's undervaluation.
Argentina-based confectionery titan Arcor's ambition to entirely acquire La Serenísima, a prominent dairy company based in Argentina, has hit a roadblock. Mastellone Hermanos, holding a majority stake of 51% in La Serenísima, rejected Arcor's proposal on the grounds that the offer undervalued the stake.
Back in 2015, Arcor and France’s dairy leader Danone, through their venture known as Bagley Argentina, had secured a 25% equity in La Serenísima for roughly $60 million. Fast forward, Arcor and Bagley Argentina have consolidated their stake to around 49% and are now aiming to acquire the remaining shares. However, the details regarding Danone's position in the takeover maneuver and the specific financial terms proposed remain undisclosed.
Carlos Agote, President of Mastellone Hermanos, filed a formal objection against the suggested price, calling it incompatible with the pre-agreed conditions. With an option agreement entitling full acquisition rights liable to mature in 2025, Arcor's strategic move could elevate it to a significant player in Argentina's dairy sector. Meanwhile, Mastellone Hermanos reported a net sales figure of $1.3 billion in 2024, leveraging its nine manufacturing facilities and a workforce of 3,500. In contradiction, Arcor showcased sales reaching $3.8 billion, supported by its vast global operational network of 49 facilities and 21,000 employees. The unfolding scenario offers Arcor a potential pivotal shift amidst a competitive landscape dominated by global dairy giants like Saputo and Savencia Fromage & Dairy.
Back in 2015, Arcor and France’s dairy leader Danone, through their venture known as Bagley Argentina, had secured a 25% equity in La Serenísima for roughly $60 million. Fast forward, Arcor and Bagley Argentina have consolidated their stake to around 49% and are now aiming to acquire the remaining shares. However, the details regarding Danone's position in the takeover maneuver and the specific financial terms proposed remain undisclosed.
Carlos Agote, President of Mastellone Hermanos, filed a formal objection against the suggested price, calling it incompatible with the pre-agreed conditions. With an option agreement entitling full acquisition rights liable to mature in 2025, Arcor's strategic move could elevate it to a significant player in Argentina's dairy sector. Meanwhile, Mastellone Hermanos reported a net sales figure of $1.3 billion in 2024, leveraging its nine manufacturing facilities and a workforce of 3,500. In contradiction, Arcor showcased sales reaching $3.8 billion, supported by its vast global operational network of 49 facilities and 21,000 employees. The unfolding scenario offers Arcor a potential pivotal shift amidst a competitive landscape dominated by global dairy giants like Saputo and Savencia Fromage & Dairy.
