Spain's government is showing signs of openness to the acquisition of olive oil giant Deoleo by Italian firm Coricelli, despite earlier indications that Madrid favored a Spanish buyer. Coricelli has tabled a $500 million bid, surpassing offers from Spanish companies Dcoop and Acesur, which ranged between $460 million and $470 million. The shift in stance comes after initial concerns about a strategic Spanish agri-food company falling into foreign hands.
Initially, the Spanish Ministry of Agriculture, Fisheries and Food, led by Luis Planas, expressed a preference for a Spanish entity to acquire Deoleo, a major player in the global olive oil market and owner of brands like Bertolli and Carbonell. This preference was rooted in olive oil being a strategic agri-food product for Spain, which is the world's largest producer. The government even considered invoking an anti-takeover shield to block the Italian bid.
However, Coricelli, operating through its Seville-based holding company Farmers Elite Global, has sweetened its offer and reportedly committed to retaining Deoleo's management and all jobs in Spain. This approach aims to address Madrid's concerns about decision-making power shifting away from Spain. While no official statement from Deoleo or the government confirms the acceptance of the Italian bid, market participants and sources close to the deal suggest that Coricelli could finalize an exclusivity agreement soon.
The current owners of Deoleo, investment funds CVC and Alchemy, hold 50.9% and 40.3% stakes, respectively. They are motivated to maximize the sale price, making Coricelli's $500 million offer the most attractive. The Spanish government, while still potentially imposing conditions such as appointing a government-aligned board member, seems willing to let the sale proceed if the Italian bid maintains significant operational presence and employment in Spain. This nuanced position balances national strategic interests with the financial incentives for the sellers.
