Higher bid for Nutreco after interest from Cargill

11-11-2014 | |
Higher bid for Nutreco after interest from Cargill

Trading Company SHV has increased its bid for Nutreco to €44.50 per share in cash. This followed after US giant Cargill also showed interest in taking over the feed company, in combination with comments from some shareholders of Nutreco over the previous bid.

This was announced this week by a joint statement from SHV and Nutreco. According to the companies Cargill was planning to make an offer of €43.20 per share in cash. Cargill therefore examined a collaboration with private investor Permira.

Nutreco would then be split, Cargill would get Nutreco’s fish feed component and Permira would obtain the animal nutrition division.

However, splitting the company is against Nutreco’s long-term strategy, said Nutreco. The interest of Cargill has therefore been rejected and the management board and supervisory board of the company unanimously supported the earlier bid of SHV.

”The total package with SHV is very attractive,” said CEO of Nutreco Knut Knesse. There is no further interest from other parties so far, he added. Knesse did not specifically address the comments that the shareholders had about the previous bid.

With the increased bid of SHV, Nutreco is valued at nearly €3 billion. In the previous bid, this was more than €2.6 billion. If the bid succeeds, Nutreco will disappear from the stock market.

Financial experts are not surprised. They say that the first bid is usually not the highest and find the new bid from SHV a ‘fair’ one.

Emmy Koeleman Freelance editor