After an unsolicited, rival bid by Cargill, privately held SHV Holdings, which is controlled by the Fentener van Vlissingen family of the Netherlands, has raised its bid for Nutreco NV, one of the world’s biggest animal feed suppliers. The new bid by SHV Holdings, raised from €40 (US$49.71) per share to €44.50 (US$55.30) per share, for a total cash bid of US$3.73 billion, outbids Cargill’s offer of €43.20 (US$53.69) per share. Cargill and private equity firm Permira planned to split Nutreco with Cargill taking Nutreco’s fish feed business and Permira taking its animal nutrition business. The animal feed industry is expected to grow at a significant rate in the coming decades as growing global demand for meat, fish and dairy continue to climb, necessitating 60% more production of food by 2050, according to the International Feed Industry Federation. Industry watchers believe that a bidding war will not ensue in this case, as Nutreco and its advisors are against Cargill’s plan to split the company, stating that it goes against Nutreco’s long-term growth strategy.
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