Saputo, a Canada-based dairy company, has increased its takeover bid by 14% to A$449 million ($430m) to acquire an Australian dairy processor Warrnambool Cheese and Butter.
The move comes after diary co-operative Murray Goulburn (MG) announced A$420m ($404m) offer last week.
As per the revised offer, Saputo is offering to pay A$8 per share, beating MG's A$7.5 offer.
In response, the company's board has unanimously recommended Warrnambool shareholders to accept the offer in the absence of a superior proposal.
National Bank of Canada and Bank of Montreal are co-leading for the new bank loan.
Rabobank and Rothschild are acting as the financial advisers to Saputo, while Maddocks and Stikeman Elliott are providing legal counsel.
Warrnambool operates two manufacturing facilities in South West Victoria and South Australia with more than 420 staff. It produces a wide of dairy products for domestic and export markets, including cheese, butter and butter blends, milk, cream and dairy ingredients.
The company reported consolidated revenues of C$477m with EBITDA of C$25m for the year ended 30 June 2013.
