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The long-standing rivalry between Spain and Italy has taken a new turn, shifting its focus from immigration to the strategic olive oil sector. Spanish media has quickly labeled the current developments an 'olive oil battle' as Italian firm Coricelli and two Spanish contenders vie for control of Deoleo, a major player in the global olive oil market. Shares of Deoleo, which owns prominent brands such as Bertolli, Carapelli, Carbonell, and Koipe, experienced a 2.7 percent decline today on the Madrid Stock Exchange, closing at 0.4670 euros around 2:00 pm. This dip follows a significant rally in recent weeks, with shares surging nearly 43 percent over the last five trading sessions and an impressive 160 percent since the beginning of the year.
Market observers attribute the share price fluctuations to rumors circulating from 'elEconomista', suggesting that the prospect of Deoleo falling into Italian hands has triggered 'alarm bells within the government' in Madrid. Sources close to the deal have confirmed 'concern within the Ministry of Agriculture' regarding a potential acquisition by Coricelli. The Italian firm is reportedly prepared to pay 500 million euros, thereby outbidding offers from both the Andalusian cooperative Dcoop and Acesur, the company behind Coosur and La Española brands.
For Spain, olive oil is deemed a strategic agri-food product, and Deoleo's significant presence in the US market further amplifies the desire to prevent its decision-making power from moving to Italy. To circumvent a possible government veto, the Coricelli group has strategically launched its bid through Farmers Elite Global, a holding company that has been based in Seville for several years. This entity already owns Aceites Abasa, among other companies. The newspaper adds that Coricelli's CEO, Lorenzo Coricelli, shifted the focus of operations from Italy to Spain some time ago and has pledged to retain Deoleo's current management in Spain and safeguard all existing jobs.
However, within the Spanish olive oil sector, there is palpable concern. Some industry voices have urged the government to activate the 'anti-takeover shield', a mechanism introduced in 2020 during the pandemic. This shield mandates prior authorization for specific investments involving significant share acquisitions or control of companies deemed strategically sensitive, aiming to preserve Deoleo's 'Spanish identity'.
Last Thursday, 'elEconomista' reported that the Coricelli group had increased its offer for Deoleo to 500 million euros, surpassing Dcoop's earlier proposal of 460 million euros and Acesur's bid. Deoleo, in a statement to the CNMV that afternoon, only confirmed that its major shareholders, CVC and Alchemy, holding 50.9 percent and 40.3 percent stakes respectively, 'are considering the sale of their stakes'. The statement made no mention of specific potential buyers, merely noting that the funds 'are analysing possible strategic alternatives in relation to their investment, including the possible sale of all or part of the Deoleo group’s assets and operations'. Despite the lack of official confirmation on bidders, sources close to the deal, as reported by 'elEconomista' yesterday, indicate that while further developments are possible, 'all the signs suggest that Coricelli could sign an exclusivity agreement in the coming days to finalise the deal'.
Source: Il Sole 24 ORE