Deoleo sale draws €500 million bid as Spain watches olive oil consolidation
Farmers Elite Global, Dcoop and Acesur are competing to acquire Deoleo, owner of brands including Carbonell, Hojiblanca and Koipe. IDEAL reports bids of up to €500 million, while Spain’s government favors a Spanish buyer that protects domestic industrial and grower interests.
Three bidders compete for Deoleo
The prospective sale of Deoleo is emerging as a major test for consolidation in the olive oil industry at a time when producers are preparing for the next campaign with expectations of good volumes but concern over low prices. Deoleo manufactures brands including Hojiblanca and Carbonell and also owns Koipe, giving the transaction significance beyond a routine change of ownership.
According to IDEAL, three bidders have entered the process: Farmers Elite Global, Spanish cooperative Dcoop and Spanish olive oil group Acesur. Farmers Elite Global submitted an offer of up to €500 million on August 15 and requested exclusive negotiations through completion. IDEAL puts Dcoop’s offer at €470 million and Acesur’s at €460 million.
Farmers Elite Global is a Spanish holding company and the global parent of the Coricelli family’s business group. IDEAL reports that the company has been based in Seville since 2015 and controls group businesses in Spain, Italy and the United States, including Pietro Coricelli SPA. Its presence in Spain predates the holding company’s relocation: the group also owns Aceites Abasa in Baena, Córdoba, acquired in the early 2000s.
Major shareholders consider strategic alternatives
The sale process has accelerated in recent weeks and is expected to be defined during September, according to IDEAL. Investment funds CVC and Alchemy, which hold 50.9% and 40.3% of Deoleo respectively, have confirmed that they are reviewing strategic alternatives for their investment. Their disclosure to Spain’s National Securities Market Commission included a possible sale of all or part of Deoleo’s assets and businesses.
The structure of the Farmers Elite Global bid adds a cross-border dimension. Although the bidder is domiciled in Spain, it is the parent of a group with substantial Italian operations. That matters because Spain accounts for 40% of global olive oil production, while Italy is one of its major competitors in exports of olive oil and related products. Control of a company with Deoleo’s brands and commercial reach could therefore influence competition between the two industries and the positioning of Spanish oil in overseas markets.
Spanish government favors a domestic buyer
Spain’s Ministry of Agriculture, Fisheries and Food is monitoring the process because of its impact on the agri-food sector. Sources at the ministry led by Luis Planas told IDEAL that the government would favor a Spanish entity as the buyer, within existing law and market conditions. The ministry also supports an option that preserves Spanish industrial interests and strictly respects the interests of domestic olive growers.
The government’s position does not determine the outcome of what it describes as a possible private transaction between companies and investment funds. It nevertheless highlights the political sensitivity of ownership in an industry where Spain is the world’s largest producer. The distinction between the bidders may consequently involve more than headline price, including corporate control, industrial operations and relationships with growers.
The negotiations are unfolding against difficult economics at farm level. Producers hope that origin prices in the next campaign will rise above €4 per liter, which they view as necessary to protect profitability. IDEAL reports that olive oil currently sells for less than €4 per liter in supermarkets, while higher production costs leave many farmers unable to cover their expenses. A buyer of Deoleo will therefore enter a market with improved volume prospects but persistent pressure on producer margins.
