Italy's Nextalia, NB Renaissance to file joint Verisem bid - source (updated)
05/12/2023 17:05
(Adds details on structure of bid in paragraph 5; previous NB
Renaissance deals in 10-11)
MILAN, Dec 5 (Reuters) - Milan-based private equity firm
Nextalia is preparing to file a joint bid with rival NB
Renaissance for Verisem, two sources close to the matter said,
after the Rome government stopped China-owned Syngenta from
buying the Italian seed producer.
Under former Prime Minister Mario Draghi, Italy in 2021
prevented an acquisition of Verisem by Syngenta, a Swiss-based
pesticides and seeds giant owned by China National Chemical
Corporation since a $43 billion takeover in 2017.
Under Italian rules, the government has "golden powers" to
veto foreign bids for assets deemed of strategic national
interest.
The Chinese bid for Verisem, which owns brands such as Suba
Seeds and Condor Seed Production, was the first time that Italy
exercised such powers in the agricultural sector.
The sources said the two Italian private equity firms were
now preparing to file a joint bid for Verisem by a Dec. 20
deadline. Each investment firm will account for 50% of the bid,
one of the sources said.
After initially being in competition for Verisem, Nextalia
and NB Renaissance decided to join forces to bid for an asset
which the sources said was worth between 160 million euros
($173 million) and 180 million including debt.
Nextalia is a venture founded by former Barclays and
Mediobanca investment banker Francesco Canzonieri, with backing
from top bank Intesa Sanpaolo ISP.MI and insurer UnipolSAI
US.MI .
Nextalia's private equity arm manages 800 million euros in
assets. The firm also runs closed-end funds that buy impaired
loans through another 330-million euro business.
NB Renaissance was created in 2015 when Intesa spun off its
private equity business, setting up a partnership with U.S.
investment firm Neuberger Berman.
NB Renaissance is currently invested in another agricultural
business - Sicit, an Italian maker of biostimulants for
agriculture.
Earlier this year, NB Renaissance sold bioplastic firm
Novamont to Versalis, the chemical company of Italian energy
major Eni ENI.MI . In 2022, it sold Italian fertiliser maker
Biolchim to U.S. conglomerate JM Huber Corporation.
($1 = 0.9235 euros)