Arcor made an offer to take control of Mastellone and keep La Serenísima

In a statement to the Stock Exchange, Arcor announced that it will take control of Mastellone, a company in which it held a 49% stake.

The statement details that Arcor 's Board of Directors resolved to "submit notification of the exercise of the Purchase Option, together with the other Buyers, for all of the MHSA shares subject to the Purchase Option ( approximately 51% of MHSA's shareholding ), under the terms agreed upon in the Purchase Option contract."

In a statement signed by Arcor Vice President Mario Enrique Pagani, "the company reported that, within the framework of the stock purchase and sale option entered into in 2015, it has decided, together with Bagley Argentina and Bagley Latin America, to exercise the right to acquire 51% of MHSA's stock."

This transaction is part of an agreement signed on December 3, 2015, in which the buyers—Arcor, Bagley Argentina, and Bagley Latin America—and the sellers—the Class A, B, C, and D shareholders of Mastellone—agreed on a purchase option that will now be effectively executed.

However, Mastellone claims that the transaction was challenged for not complying with the share price set by Arcor.

In a separate statement, Carlos Agote, president of Mastellone Hermanos, informed the Securities and Exchange Commission that they will "challenge the price per share" indicated in the purchase notice sent by Arcor and Bagley.

Arcor's acquisition of Mastellone Hermanos, the parent company of the La Serenísima brand, began in 2015. It has now announced that it will exercise its option to purchase the dairy company. Ten years ago, together with Bagley, Arcor acquired 25% of Mastellone's shares.

From then on, the Cordoba-based Pagani and Bagley family's stake in the dairy company increased to 49% in 2020. This left it in a position to exercise a purchase option for the entire company, as it has just done. The remaining 51% was held by the Mastellone family and the investment fund Dallpoint Investments .

The total amount of the transaction has not yet been disclosed, but with this move, Arcor consolidates its position as the country's leading food company and acquires Argentina's largest dairy company.

Mastellone Brothers was founded in 1929 by an immigrant, Antonino Mastellone. The name La Serenissima was inspired by an episode from World War I, when an Italian squadron flew over Vienna and dropped leaflets calling for peace instead of bombs.

Mastellone produces fluid milk, cream, butter, cheeses, powdered milk, and dulce de leche, marketed under various brands. Its portfolio includes Finlandia, Cremón, La Armonía, Martona, and Ser, among others. It has over 50% of the total fluid milk market. And La Serenísima appears at the top of surveys seeking to determine the Argentine brand of choice.