Shares of Deoleo, the world’s largest olive oil company, plunged on Thursday after rival Spanish producers Dcoop and Acesur announced plans to acquire the company, a move that would further consolidate Spain’s dominance of the global olive oil industry.
Under the proposed deal, Dcoop and Acesur will each own a 50 per cent stake in Deoleo, creating a major olive oil group in the region.
Dcoop said the acquisition was aimed at increasing global olive oil consumption and helping farmers generate greater value across the supply chain.
The development follows an intensifying takeover battle involving Dcoop and multinational companies from Italy, France and Australia. Deoleo’s shares rose by more than 20 per cent on August 19 after news of the competing acquisition interest emerged.
Dcoop had reportedly made a previous offer of €470m ($545m) for Deoleo.
Spain is one of the world’s leading olive oil producers and serves as a key global benchmark for pricing the commodity.
Olive oil prices have experienced significant volatility in recent years as supply levels fluctuated from one season to another.
Climate change, water scarcity, and the spread of pests and diseases have contributed to the production uncertainties.
