Imogen Calderwood
AT least three foreign investors had last week submitted bids for the company, Deoleo, leaving the government to decide whether to let foreign investors take control one of its main agricultural sectors.
Prime Minister Rajoy’s government has already warned potential investors against splitting up Deoleo’s assets, or shifting its focus away from olive oil farming.
Fondo Strategico Italiano, the Italian state-backed fund, and two private equity firms – the Carlyle Group and the Rhone Group – are three potential foreign investors in Deoleo, which distributes a fifth of the olive oil sold worldwide.
Deoleo’s brands include Carbonell and Koipe in Spain, and Bertolli and Carapelli in Italy.
Miguel Arias Canete, the Spanish agricultural minister, said: “The government is following this process very closely and is sending the message that we don’t want the company to be cut up into bits.”
“We want Deoleo to bet on Spanish oil,” he added, during a recent visit to Cordoba.
The takeover bid was launched by four Spanish banks that together own 31% of Deoleo’s equity.
Deoleo confirmed in a statement that it had received offers, without naming the potential investors, and that all the offers valued the company below its market capitalization – currently €456 million.
To keep Deoleo, the government could add a counteroffer to the mix, led by its state-owned industrial holding company Sociedad Estatal de Participaciones Industriales – or Sepi.
Perhaps the Italian have a right to bid for the oil company in Spain.
“Olive trees were planted in the entire Mediterranean basin during evolution of the Roman republic and empire. According to the historian Pliny, Italy had “excellent olive oil at reasonable prices” by the 1st century AD, “the best in the Mediterranean”, he maintained.
If any of these potential purchasers buy this business, they will be the owners and the government cannot tell them what to do with it. If the Government want to make sure the business is not broken up, they will have to buy it themselves or be a co-investor.
The Italians buy up left over Spanish and Moroccan oil, and re-badge it as their own “extra-virgin”. The Mafia make about 5,000 m euros a year doing it.
PM,
Careful you might be added to their hit list. I think there
are still some Corleone family members still living on the Costa.
As for the government investing in the oil business they already are, very slippery hands I might add, besides the EU will give them the money if they ask for it.
By the way, you know what happened to the Judge and his entourage that were on their way back to Calabria. Nasty.
caccia
APRIL 9TH, 2014 7:01 PM
PM,
Careful you might be added to their hit list. I think there
are still some Corleone family members still living on the Costa.
I fear no one . . . AAaaarrgh !
SO SORY, PM HASA JUSTA HAD AN ACCIDENTA WITH HIS KEYABORD. IT IS STICKING OUT OF HEES HEAD !