A plant belonging to Cargill. (Photo Credit: Cargill)
NETHERLANDSWednesday, December 24, 2014, 03:20 (GMT + 9)
After weighing all the relevant facts, including alternative potential investments, US company Cargill has decided not to acquire Nutreco, leaving SHV Holdings as the only bidder.
The Minneapolis-based firm took this decision a month after the Dutch animal-feed group had rejected Cargill’s first offer because of the US firm’s plans to split up the feed producer with private-equity company Permira.
Amersfoort-based Nutreco, in the Netherlands, recommended an improved offer from SHV that equals EUR 44.50 a share, following rejection of an initial 43.20 euro-a-share proposal from Cargill and Permira, according to data compiled by Bloomberg.
SHV, whose value for Nutreco amounts to EUR 3.1 billion, has obtained regulatory clearance from the European Commission and Turkish competition authorities in connection with the offer, Reuters informed.
Meanwhile, Cargill remains committed to building further its global animal nutrition platform through both organic investment and acquisitions.
Nutreco, which had sales amounting to EUR 5.2 million last year, has been trying to bolster its global position, recently buying two Brazilian feed companies to boost its emerging markets presence.
SHV, which was founded in 1896 by eight Dutch coal wholesalers, owns assets in oil exploration and transport in addition to Makro.
The firm's revenue last year amounted to EUR 17.6 billion, and the net cash position was EUR 2.6 billion, according to its website.