Dutch producer of processed meat products and animal and fish feed, Nutreco, has accepted a takeover bid of $3.4 billion from privately-owned investment firm SHV, also based in the Netherlands. The offer represents a per share price of €40 (US$51.06) and a 42% premium to Nutreco’s closing price on Friday, October 17th. Prior to closing however, there are various conditions attached to the deal. SHV must gain approval from holders of at least 95% of Nutreco’s shares which would allow it force the sale and to delist from the Amsterdam stock exchange. The deal is also conditional upon Nutreco receiving a better offer of at least 8% above SHV’s offer. If a higher bid is made, SHV will have the option to raise its bid and counter-offer. Nutreco shares have been in decline for the past 12 months during which time it failed to sell its Spanish and Portuguese meat and feed business which includes its Sada chicken business which lost a significant supply contract to the Mercadona retail chain, and lost a significant fish feed supply buyer after Norwegian fish farming giant Marine Harvest announced it was beginning its own feed operations that would supply more than half its needs in Norway.
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