Italia-Spain showdown over olive oil: Coricelli offers 500 million for Deoleo
It’s not just about migrants. The rivalry between Spain and Italia has shifted to olive oil. Deoleo shares were down today on the Madrid Stock Exchange, following the rally of recent weeks – as reported by Radiocor – in what the Spanish press has already dubbed the ‘olive oil battle between Spain and Italia’, with the Italian firm Coricelli and two Spanish companies locked in a standoff. Shares in the Deoleo group, which owns the Bertolli, Carapelli, Carbonell and Koipe, was down 2.7 per cent at 0.4670 euros at around 2.00 pm, but over the last five trading sessions the rise has been close to 43 per cent and since the start of the year it stands at around 160 per cent.
According to market participants, the share price is being affected by rumours reported by “elEconomista”, which suggest that the possibility that “Deoleo might end up in Italian hands has set alarm bells ringing within the government” in Madrid. “As confirmed by sources close to the deal, there is concern within the Ministry of Agriculture over the possibility that the company could be acquired by the Italian firm Coricelli, which is prepared to pay 500 million euros and has therefore outbid the offers submitted by both the Andalusian cooperative Dcoop and Acesur, the company that owns Coosur and La Española”, writes “elEconomista”.
For Spain, olive oil is a strategic agri-food product, and Deoleo is also a major player in the US market; consequently, there is a desire to prevent decision-making power from shifting to Italia, the newspaper emphasises. On the other hand, to avoid the possibility of a veto by the Moncloa, the Coricelli group has launched its bid through the holding company Farmers Elite Global, which has been based in Seville for years and owns, amongst other companies, Aceites Abasa, the newspaper adds, explaining that the company, led by Lorenzo Coricelli, shifted the focus of its operations from Italia to Spain some time ago and insists that Deoleo’s management will not only continue here but is also committed to retaining all jobs.
Within the sector, however, there is concern, and some have already called on the government to activate the so-called ‘anti-takeover shield’ to safeguard the company’s ‘Spanish identity’. Introduced in 2020 at the height of the pandemic, the shield requires prior authorisation for certain investments involving the acquisition of significant shareholdings or control of companies deemed sensitive.
On Thursday, “elEconomista” reported that the Coricelli group had increased its bid for Deoleo to 500 million euros, thereby surpassing the proposal from Dcoop, which had offered 460 million, and the other bid submitted by Acesur. Deoleo merely confirmed in a statement to the CNMV that afternoon that both CVC and Alchemy are considering the sale of their stakes – 50.9 per cent and 40.3 per cent respectively – without mentioning any potential buyers. According to the group, the funds “are analysing possible strategic alternatives in relation to their investment, including the possible sale of all or part of the Deoleo group’s assets and operations”. Sources close to the deal – as reported yesterday by *elEconomista* – assure that, whilst further developments may yet arise, all the signs suggest that Coricelli could sign an exclusivity agreement in the coming days to finalise the deal.
