Dutch Company Rebuffs Cargill’s Acquisition Offer, Cargill Still Interested
Cargill is expressing continued interest in acquiring a Dutch animal-feed provider, despite earlier attempts falling through.
The Wayzata-based food production company previously made a bid on Nutreco NV with London-based Permira Advisors LLP, but Nutreco rejected it in favor of $3.7 billion offered by Dutch Holding Company SHV Holdings, according to Bloomberg.
Nutreco expressed concern for Cargill’s plan to split the company, says the Wall Street Journal. Cargill intended to acquire the fish feed business, while Permira would take the animal nutrition portion.
“Nutreco, together with its advisors, have concluded that Cargill’s intention of breaking up the Nutreco business is fundamentally inconsistent with Nutreco’s long-term growth strategy for the business as a whole,” the company said in a statement.
SHV Holdings made an initial offer to Nutreco earlier in the year, with Cargill later coming in with a higher offer of €43.20 per share (approximately $53.50), according to company documents. SHV later matched that amount, then raised its bid to €44.50 ($55.10).
Nutreco’s board has recommended shareholder approval of SHV’s bid, but retains the right to change that recommendation. The company said Cargill is still weighing its options and conducting analysis.
Cargill is the largest privately held company in the United States. It recently added Carlson CEO Trudy Rautio to their board of directors.
In 2013, TCB talked with outgoing CEO Greg Page and now current CEO David MacLennan about the state of the company and its plans for the future.