Fish feed. (Photo Credit: Skretting)

Cargill-SVH’s bid battle for Nutreco strengthens

NETHERLANDS
Friday, December 12, 2014, 04:00 (GMT + 9)

US multinational firm Cargill is unwilling to abandon the battle to take over Dutch feed supplier Nutreco, whose market value has been estimated in about EUR 3,200 million.

Despite the preference Nutreco showed for Dutch family-owned SHV’s purchase offer over that of US food company Cargill’s, the latter is considering making a solo bid for the Dutch giant firm.

Nutreco’s intention is based on the fact that Cargill wanted to split the firm between itself and private equity investor Permira, Reuters reported.

However, Cargill released a statement voicing its intention not to do so and to present the bid by itself.

"After extensive study, we decided to continue on a stand-alone basis, and consider an offer for the whole of Nutreco. We believe we would be very good stewards of the Nutreco business in the interest of all stakeholders," pointed out the American firm in the statement.

Nutreco has already attracted a USD 3.7 billion bid from SHV and is recommending the improved SHV’s offer equal to EUR 44.50 a share.

“We have not received a concrete, written proposal that is likely to qualify or evolve to a competing offer,” Nutreco spokesperson said in an e-mailed statement sent to The Financial Times.

“There is no doubt that it is clear to Cargill what will constitute a potential competing offer and what they need to do if they want to make a proposal that allows Nutreco to potentially engage,” he added.

Meanwhile, Cargill has not released the value to its potential counter offer saying it needed access to more information before it could attach a price.

For their part, leading shareholders have been calling for Nutreco to open its books to Cargill, deeming it as "a credible player".

Related articles:

- Nutreco backs SHV’s offer for its shares
- SVH increases its offer for Nutreco 

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