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Shares of Deoleo, the world's largest olive oil bottler and marketer based in Spain, experienced a significant surge of nearly 18% on Wednesday morning. This sharp increase reflects an intensifying battle among various firms vying for control of the prominent company.
Reports indicate that the Spanish agri-food cooperative group Dcoop has emerged as a frontrunner in the acquisition race, tabling an offer of 470 million euros (equivalent to approximately $545 million) for Deoleo. This bid has positioned Dcoop ahead of other interested parties, which reportedly include Italian, French, and Australian firms.
While the sale of Deoleo is not yet finalized, Spain's El Economista newspaper, citing anonymous sources familiar with the proceedings, reported that the process is in its concluding stages. An initial closing date was anticipated for September.
Should the acquisition be successfully completed, it is expected to consolidate Spain's leading position within the strategically vital olive oil sector. Such a deal would lead to the formation of a new olive oil powerhouse, integrating various brands under one umbrella and securing an estimated 15% share of Spain's national olive oil consumption.
When contacted by CNBC for comments regarding the ongoing developments, spokespeople for both Dcoop and Deoleo were not immediately available.
Deoleo's share performance throughout the year has been noteworthy, especially considering Spain's crucial role alongside Italy and Greece as one of the globe's foremost olive oil producers and a key benchmark for international prices. The sector has recently grappled with dramatic price swings, primarily influenced by persistent challenges such as climate change, water scarcity, and pressures from pests and diseases.
Despite these external factors, Deoleo, which produces well-known household olive oil brands like Bertolli and Carbonell, recently conveyed to CNBC that a period marked by 'unprecedented volatility' has definitively transitioned into 'more stable market conditions.'
Source: CNBC