Nutreco rejects Permira/Cargill joint takeover offer

Ellie Pullen
11 November 2014

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Dutch animal feed company Nutreco has announced it has rejected a joint takeover bid by Permira and US-based Cargill due to the two parties’ plans to split up the business.

Nutreco said in a statement that it has rejected the bid by Permira and Cargill because the two firms wanted to divide the business's assets should their offer be successful. Permira was to take Nutreco's animal nutrition business, while Cargill wanted to acquire its fish feed division.

Nutreco stated this strategy was not in line with its long-term growth plans for the business as a whole and was therefore not in the interest of its shareholders.

The two firms had jointly offered at least €43.2 per share in cash for Nutreco, which is listed on the Amsterdam Stock Exchange.

Cargill is a Minneapolis-based agricultural commodities and financial services firm.

SHV Holding, a Dutch family-owned trading company, had made an offer to take Nutreco private in late October, with the Cargill/Permira competing offer being received by Nutreco on 8 November. SHV has subsequently increased its offer price from €40 to €44.5 per share, valuing Nutreco at almost €3bn.