Arcor’s Bid for Full Control of La Serenísima Rejected
Argentina-based Arcor, a major player in the food and beverage industry, recently faced a setback as its attempt to acquire full control of local dairy leader La Serenísima was rebuffed by its majority owner, Mastellone Hermanos. The latter, holding a 51% stake, deemed Arcor’s offer as undervalued.
This rejection comes despite Arcor and France’s Danone having initially invested approximately $60 million for a 25% share in La Serenísima through their joint venture, Bagley Argentina, back in 2015. Since then, both firms have gradually raised their holdings to approximately 49%.
Arcor’s objective now is clear: it seeks to buy the remainder of the shares. However, Danone has not provided any commentary on their current stake in La Serenísima when approached. Notably, an option agreement exists that allows Arcor to take full control of the dairy entity, but this must be activated by 2025.
In a recent letter of intent submitted to the Argentine Stock Exchange (Comisión Nacional de Valores or CNV), Arcor’s Vice President, Mario Enrique Pagani, expressed the company’s desire to secure the remaining 51.323% of Mastellone Hermanos’ shares. Nevertheless, Carlos Agote, president of Mastellone Hermanos, promptly rejected the proposal.
Agote indicated in a CNV filing, “After receiving the notification, the sellers’ representatives have informed the company that they will challenge the price per share indicated in the notice, considering it inconsistent with the guidelines established in the agreement.” The original agreement, crafted during the 2015 stake purchase, grants Arcor and Danone 30 days to dispute Mastellone’s valuation.
Furthermore, the specifics of Danone’s involvement in the transaction remain unclear, along with the proposed price for the remaining stake. All parties, including Arcor, Danone, and Mastellone, declined to comment.
If Arcor successfully acquires Mastellone Hermanos, it will position itself as a significant competitor in the Argentine dairy market, contending with companies like Canada’s Saputo and France’s Savencia Fromage & Dairy. Notably, Argentine dairy cooperative SanCor is currently undergoing insolvency proceedings.
La Serenísima, the flagship brand of Mastellone Hermanos, offers a range of products, including powdered milk, ricotta cheese, butter, cream, yogurts, and desserts. In 2024, the company reported net sales of $1.3 billion, operating nine manufacturing plants and employing approximately 3,500 people in Argentina. Its products reach consumers in various countries, including Brazil, the U.S., Mexico, Russia, Chile, Uruguay, Bolivia, and Peru.
In contrast, Arcor has established itself as a significant entity in the food and drink business, generating $3.8 billion in sales last year. With 49 facilities globally and a workforce of 21,000, Arcor continues to adapt to evolving food and drink consumer trends.
