US agri trader drops multi-billion bid for Dutch Nutreco
US agricultural trader Cargill has dropped its multi-billion euro bid for Dutch animal feed group Nutreco, with a rival saying on Tuesday it has acquired 16 percent of Nutreco's shares.
"Cargill has concluded it will no longer pursue an acquisition of Nutreco," the Minneapolis-based Cargill announced in a statement.
It "considered all the relevant facts, including the attractiveness of acquiring Nutreco relative to alternative potential investment," the giant US trader and processor of raw agricultural goods added.
Nutreco and Dutch family-owned SHV in October agreed on a friendly takeover in which SHV would buy a 100 percent stake in Nutreco at 40 euros ($48.8) per share.
But Cargill in November sparked a potential bidding war for Nutreco, which last year reported at turnover of 5.3 billion euros, when it raised its own bid to 43.20 euros per share.
Nutreco vehemently opposed Cargill's unsolicited bid as the US giant aimed to split the Dutch company in two.
SHV then made a counter-offer at 44.50 euros per share, giving Nutreco a final total value of 3.1 billion euros.
Cargill's announcement comes as SHV on Tuesday publicly revealed it had raised its stake in Nutreco from 14.7 percent to 16.0 percent, according to Dutch financial guidelines.
Founded in 1994, Nutreco employs around 10,000 people in more than 30 countries and sells fish and animal feed in more than 80 countries globally.
© 2014 AFP