Deoleo heads for worst day in six years after Spanish rivals agree to buy operating parent

Deoleo SA

Yesterday 11:44

** Shares in Spanish olive oil company Deoleo OLEO.MC slump about 18% after local rivals Acesur and Dcoop agreed to acquire the company's operating parent, owner of the Carbonell and Bertolli brands
** Shares are on track for their worst day since May 2020
** The deal values the business at around €520 million ($585.57 million) with the value attributable to Deoleo's 50.99% stake in Deoleo Holding estimated at €190-200 million, the company said
** The transaction is subject to antitrust approvals in Spain and the United States, foreign investment clearance in Italy and shareholder approval
** The agreement is also conditional on Japan's Mizkan not exercising certain contractual rights related to Bertolli brand licences within two months of the announcement following the change of control
     
($1 = 0.8880 euros)

(Reporting by Gemma Guasch)
((Gemma.guasch@thomsonreuters.com))