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Some smaller shareholders think the Coca-Cola Amatil is undervalued and are trying to get the takeover bid increased.Credit:Bloomberg

It's loss from the Australian Securities Exchange would be yet another body blow for Australia's listed food and beverage industry,following on the heels of the likes of Carlton&United Breweries,Goodman Fielder,Lion Nathan,Bellamy's and many more.

There is a philosophical argument as to whether foreign ownership matters. For what it is worth,I am not sure there is clear evidence that local owners tend to make decisions that are"kinder"to Australians than foreign owners. There might be an emotional benefit,but that is likely all.

More interesting is the dynamic that has led to such an outflow of ownership. After all,if Australian investors valued these companies as highly as their international suitors,the buyers would not be offered a such an attractive price-tag.

There are three possibilities.

The first two are pure maths:either we value these companies too cheaply or the buyers are paying too much. If it is the latter,we should not be too unhappy – we are richer,as a nation,if someone wants to give us $1.30 for something worth $1.

If,though,opportunistic buyers are taking advantage of our pessimism… well,I guess ASX investors only have themselves to blame for failing to see the value in front of them.

The third option,though,owes more to some of the big-picture realities of our global economy:scale matters. And scale is fast becoming international.

For example,CUB was acquired by international brewer SAB Miller in 2011,which was then acquired five years later by another,larger brewer,AB InBev,which,itself,was the product of a series of mergers and acquisitions.

So,are we likely to see the rest of our food companies snapped up over time? Perhaps,because of those scale benefits.

The challenge for Australian investors is not to let it happen too cheaply,letting the easy profits flow overseas.

Coca-Cola Amatil is not regarded as the best-quality company on our bourse but the takeover offer is still less than its $13 share price high earlier this year. If it was worth $13 then,isn't it worth at least that much now? Some smaller shareholders think so and are trying to get the bid increased.

You cannot blame the would-be buyers for being opportunistic. After all,that is precisely what we,as investors,should do – look for share prices left behind by the recovery.

The S&P/ASX 200 Index is up about 30 per cent from its March lows. However,many companies that make up the index have not recovered anywhere near that much.

Energy companies,for example,are still down because of a low oil price. If the oil price recovers,they should,too.

Banks and infrastructure companies took the brunt of the COVID-pandemic financial pain. A buyer with a tolerance for risk and volatility might find opportunities there. Of course,you have to believe these businesses will eventually bounce back.

Scott Phillips is chief investment officer at Motley Fool

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