Dutch investor SHV Holdings has increased its offer to approximately EUR 3 billion (USD 3.7 billion) to buy out Dutch fish feed producer Nutreco to beat a competing offer from fish feed producer Cargill.
SHV is now offering to buy out Nutreco for EUR 44.50 (USD 55.39) per share, beating an unsolicited rival bid from Cargill of EUR 43.20 (USD 53.77) per share, according to a joint statement from SHV and Nutreco.
“The executive board and the supervisory board of Nutreco fully support and unanimously recommend the increased offer from SHV,” Nutreco said in the statement.
SHV made an initial offer of EUR 40 (USD 49.79) per share back on 20 October, a bid Nutreco seemed interested in. SHV followed up with the new bid after Nutreco got the unsolicited offer from Cargill on 8 November.
Nutreco, in the joint statement, said the Cargill offer consisted of “a structured transaction” which would give the company’s fish feed business to Cargill and the company’s animal nutrition business to private equity firm Permira.
Nutreco announced it rejected that offer, saying “breaking up the Nutreco business is fundamentally inconsistent with Nutreco’s long-term growth strategy.”
Nutreco’s executive and supervisory boards have expressed their support for the current SHV offer.
