Cargill said on December 11 that it would bid alone for Dutch animal feed company Nutreco. It also said that, contrary to a previous offer, it would not break up the business to compete with rival bidder SHV Holdings.
SHV offered to buy Nutreco in October and sweetened its bid in November.
Nutreco said Cargill has not made a formal offer and that any bid would have to match the terms of SHV’s EUR3.1 billion (US$3.8 billion) offer.
"We have not received a concrete, written proposal that is likely to qualify or evolve to a competing offer," Nutreco said. "There is no doubt that it is clear to Cargill what will constitute a potential competing offer."
Cargill said it has asked Nutreco to allow it to pursue due diligence on a potential offer.
“We believe we would be very good stewards of the Nutreco business in the interest of all stakeholders,” a Cargill spokesman said.
Cargill originally had said it would make a joint bid with private equity firm Permira and then split Nutreco’s animal and fish feed divisions into separate companies.
At the time, Nutreco said that offer was “fundamentally inconsistent with Nutreco’s long-term growth strategy for the business as a whole.”
In SHV’s offer memorandum, it pledged to make no redundancies, not to break up the company, and keep its headquarters in the Netherlands.
UPDATE 1-Cargill says to go it alone on Nutreco deal
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