Danone, Arcor to buy Argentina's La Serenisima: LN

Arcor and Danone’s proposed acquisition of the remaining 51.323% stake in Argentina’s La Serenísima has been rejected by majority stakeholders Mastellone Hermanos and Dallpoint fund, which collectively hold 51% of the dairy company. The bid, which sought to fully acquire the firm, was deemed undervalued by the sellers, prompting a formal challenge to the proposed share price. The rejection follows a long-standing ownership dispute initiated in 2015, when Arcor and Danone (via Bagley Argentina) acquired a 25% stake for $60 million, later increasing their holding to 49%. An option agreement, set to expire in 2025, had previously allowed Arcor to pursue full control, but Mastellone Hermanos’ leadership has contested the valuation terms.

La Serenísima, a key player in Argentina’s dairy sector with $1.3 billion in 2024 net sales, operates nine manufacturing plants and employs 3,500 workers according to company reports. The company’s financial struggles and strategic disagreements among stakeholders have intensified the ownership battle, with implications for the broader Latin American dairy market. Arcor, a confectionery and agri-food firm with $3.8 billion in annual sales, aims to expand its dairy footprint by acquiring La Serenísima, a brand exporting products like powdered milk and ricotta to markets across the Americas and beyond.

The rejection grants Arcor and Danone 30 days to contest Mastellone Hermanos’ decision under the 2015 agreement. No further comments have been issued by Danone or Arcor, leaving the future of the takeover uncertain. The outcome could reshape Argentina’s dairy landscape, particularly as competitors like Saputo and Savencia Fromage & Dairy strengthen their regional presence.