SHV Holdings fends off Cargill’s interest for Nutreco with sweetened €3 bn offer

Dutch investment firm SHV Holdings NV raised its offer for Nutreco, a local producer of animal nutrition and fish feed, by 11.25 per cent to nearly €3 billion after US agri-food giant Cargill expressed interest in tabling a competing bid.

SHV increased its October €40 per share offer for Nutreco to €44.50 (cum dividend) in cash, a premium of 58 per cent to Nutreco's Friday closing price.

Nutreco and SHV had in October reached an agreement on the buyout offer, which valued the Amsterdam-based company at €2.7 billion.

Cargill,  the largest privately-held US company, had early this month said that subject to satisfactory completion of due diligence, it, along with private equity firm Permira, would make an offer of at least €43.20 in cash per share.

Minneapolis-based Cargill said that its expression of interest was still subject to its board approval. Under the proposed offer, Cargill would acquire the Fish Feed business and Permira would acquire the Animal Nutrition business.

Nutreco has rejected Cargill-Permira's expression of interest since it entails break up of Nutreco and added that it is not in line with the company's long-term growth strategy.

''Nutreco, together with its advisers, have concluded that Cargill's intention of breaking up the Nutreco business is fundamentally inconsistent with Nutreco's long-term growth strategy for the business as a whole,'' Nutreco said in a statement.

The board of Nutreco said that it has approved and unanimously recommend the increased offer from SHV.

NYSE Euronext Amsterdam stock exchange-listed Nutreco provides animal nutrition and fish feed and employs around 10,000 people in 30 countries, and sells its products in 80 countries.

The 115 year-old company reported annual revenue of €5.2 billion in 2013.

Cargill, controlled by the Cargill and MacMillan families, employs 145,000 people in 67 countries and has annual revenues of 136.65 billion.

Privately-owned and controlled by the Fentener van Vlissingen family, SHV Holdings is one of the world's largest private trading groups with interests in transport, retail, oil & gas and financial services.