- freeimages.comCargill has abandoned its bid for animal feed supplier Nutreco.
Cargill has abandoned its bid for animal feed supplier Nutreco.
“Cargill has concluded it will no longer pursue an acquisition of Nutreco,” Cargill said in a news release. “In reaching this decision, Cargill considered all relevant facts, including the attractiveness of acquiring Nutreco relative to alternative potential investments.”
Cargill previously had bid for Nutreco jointly with private equity firm Permira, and later said it was considering bidding on its own.
The initial joint bid was rejected by Nutreco after Cargill showed interest in breaking up the company. Nutreco said at the time that the approach was “fundamentally inconsistent with Nutreco’s long-term growth strategy for the business as a whole.”
SHV Holdings, Nutreco’s biggest shareholder with 15.3 percent of its issued share capital, remains as the sole bidder for Nutreco.
SHV has made an offer valuing the company at EUR3.1 billion (US$3.8 billion). Under its revised offer, SHV would pay EUR44.50 (US$54.23) a share in cash for outstanding shares of Nutreco.
Nutreco’s board of directors has recommended that shareholders accept SHV’s offer, saying it “represents an attractive price and provides high deal certainty for shareholders.”
A shareholder meeting to consider the SHV offer is set for Feb. 9.
Nutreco shares were down 5 percent on Tuesday.