December 25, 2014

SHV raises bid for Nutreco, causing Cargill to abandon takeover plans  

      
Dutch trading company SHV Holdings upped the ante in its bid to acquire Netherlands' leading feed supplier Nutreco by offering US$3.65 billion, stopping right in its tracks Cargill's own takeover ambition.

American agribusiness company Cargill offered to buy the company in November for €43.20 (US$52.61) a share. Nutreco rejected the offer largely because Cargill, together with private-equity firm Permira, intended to break up the company.

In its latest offer, SHV offered to buy Nutreco for US$54.21/share for a total of US$3.65 billion. SHV's move was widely supported by Nutreco's board of directors.

A privately owned Dutch trading company, SHV is regarded as one of the world's largest private trading groups. It has interests in transport, retail, oil and financial services, including part of the Makro cash-and-carry chain.

"Cargill has concluded it will no longer pursue an acquisition of Nutreco," the company announced shortly after SHV made its new offer.

 "In reaching this decision, Cargill considered all relevant facts, including the attractiveness of acquiring Nutreco relative to alternative potential investments," Cargill said.

Under the deal, SHV will buy 95% of Nutreco's outstanding shares.

Meanwhile, Nutreco's shares slid 4.9% to US$53.83 in early trading in Amsterdam, the Netherlands.

A shareholder meeting to decide on SHV's offer is set for February 9, 2015.