Deoleo shares fall in Madrid; according to media reports, the Government is favouring a Spanish buyer

(Il Sole 24 Ore Radiocor) - Deoleo shares are down on the Madrid Stock Exchange, following press reports that the Spanish government prefers a Spanish buyer for the olive oil producer, whilst the Italian firm Coricelli is leading the race with the highest bid, ahead of Dcoop and Acesur.

According to sources at the Ministry of Agriculture, Fisheries and Food cited by ‘Europa Press’ and reported by ‘El Confidencial’, the Spanish government hopes that a Spanish entity will be the potential buyer of Deoleo. Specifically, the Ministry, led by Luis Planas, acknowledges that it is monitoring the sale process of the Spanish multinational, with Coricelli making a bid of 500 million, Dcoop with 470 million and Acesur with 460 million, as it ‘concerns’ the agri-food sector, where Spain is a world leader in olive oil production.

Consequently, the government’s position on this ‘potential private sale between companies and investment funds’ would be ‘in favour of a Spanish entity as a potential buyer’, within the framework of ‘current legislation’ and in accordance with market conditions. Furthermore, the same sources specified that they would be ‘in favour of an option’ that safeguards Spanish industrial interests and in which the interests of domestic olive growers are ‘strictly’ respected.

Rumours had already been circulating last week that the government favoured a Spanish buyer, though these were vague and general in nature. In recent weeks, the sale of the company that owns Bertolli, Carapelli, Koipe and Carbonell has gathered pace and could be finalised in September. The CVC and Alchemy funds, which hold 50.9 per cent and 40.3 per cent of Deoleo respectively, have confirmed that they are analysing strategic alternatives for their investment, including the ‘possible disposal’ of all or part of its assets and operations, as reported to the Spanish National Securities Market Commission (CNMV).

Coricelli raised his bid for Deoleo to 500 million euros on 15 August, claiming exclusive rights to the negotiations until the deal is finalised. Sources close to the matter have told ‘Europa Press’ that Coricelli is managing the transaction through Farmers Elite Global, the Spanish holding company and global parent company of the Italian family’s business group. The company, which oversees all the group’s subsidiaries in Spain, Italia (including Pietro Coricelli Spa) and the United States, has been based in Seville since 2015. The same sources also pointed out that the business in Spain is already established, as the company also owns firms such as Aceites Abasa (Baena, Córdoba), which was acquired in the early 2000s.