Petra Foods sale of cocoa ingredients unit to Barry Callebaut runs into dispute
22 Oct 2013
Singapore's Petra Foods proposed sale of its cocoa ingredients division to Swiss company Barry Callebaut has run into problems after the ltter sought a discount in the final pricing.
In December 2012, Barry Callebaut, the world's largest chocolate manufacturer, agreed to buy the cocoa ingredients division of Petra Foods, for $950 million in cash. (See: Swiss chocolatier Barry Callebaut to buy cocoa ingredients division of Petra Foods for $950 mn)
The acquisition would give Zurich-based Barry Callebaut seven factories in Indonesia, Malaysia, Thailand, France, Germany, Brazil and Mexico, with combined annual grinding capacity of 405,000 metric tons.
In July, Petra Foods said it expected to receive $860 million from the deal, but last month Barry Callebaut wanted a reduction of $98.3 million.
Petra Foods said that the reduction in the final price sought by Barry Callebaut is not compliant with the sale purchase agreement and with the law.
It also said that it considers the price adjustments sought do not have a proper or valid basis and/or have not been properly substantiated or justified.
Petra Foods said that so far it has received S$164 million from Barry Callebaut.