Nutreco possibly taken over, says bank

24-01-2007 | |

According to a internationally operating Dutch bank, Dutch livestock feed manufacturer Nutreco could be taken over by the British investment company Permira.

Market analysts at ABN Amro Bank made their predictions in a report on Nutreco. The Dutch company is likely to lose a battle for the take over of another Dutch animal nutrition company, Provimi, to Permira.

Due to contracts between both Dutch companies, it would be likely for the British to also take over Nutreco.

The British investment company is said to be about to take a 74% share in Provimi, the analysts write.

Salmon industry

Nutreco has had a lot of money in stock, due to selling its activities in salmon industry. Still the bank’s analysts do not think the company can beat an investment company, which is able to use more aggressive financing methods.

In addition, Nutreco’s shareholders are expected to resist should the company show a willingness to pay too much for Provimi, the bank thinks. More than 50% of the shareholders has to agree to purchasing Provimi.

However, a merger of Nutreco and Provimi would be very healthy for Nutreco, the bank writes.

Stock exchange

On the Amsterdam stock exhange, the news made Nutreco’s shares rise 2.8% on Tuesday.

Nutreco is the holding company of Hendrix UTD, Trouw Nutrition, Grupo Sada and Selko. Also Euribrid, sold to Hendrix Genetics today, has been part of Nutreco.

Related news items:
• Euribrid acquired by Hendrix Genetics (24 Jan 2007)

Related web sites:
• Nutreco
• Provimi
• Permira
• ABN Amro

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