Canadian dairy giant Saputo has fallen short of taking full ownership of Victoria's Warrnambool Cheese and Butter Factory (WCB).
Beverage and food group Lion has refused to sell its 10% stake, and Saputo has closed its takeover offer with an 87.9% interest.
Warrnambool will remain listed on the Australian share market.
Shareholders who sold to Saputo will receive $9.40 a share, not the $9.60 they would have received if the suitor had surpassed a 90% stake.
Lion bought its stake in Warrnambool in October 2013, and holds cheese supply contracts with the company.
Warrnambool was the target of a prolonged three-way fight for control by Saputo, Australia's Bega Cheese and Murray Goulburn Co-operative.
Warrnambool shares were down 1.96% to $8.97 at 1345 AEDT.