Italian and Spanish Firms in Bidding War, Deoleo in the Spotlight
The acquisition of Deoleo, one of the world’s largest olive oil producers and distributors, has intensified with the entry of an Italian bidder. Italian food company Coricelli, through its Seville-based holding company Farmers Elite Global, has submitted a €500 million takeover offer and is seeking exclusive negotiation rights. This bid surpasses the previous €470 million offer from Spanish cooperative giant Dcoop.
Deoleo holds a prominent position in the international market, owning several well-known Spanish olive oil brands such as Carbonell and Koipe. This bidding war is not just a commercial contest but also touches on sensitive national concerns about control over a key industry.
Spanish Government Signals Preference: ‘National Interest’ a Priority
Following Coricelli’s offer, the Spanish government has publicly commented on the matter for the first time. According to sources from the Spanish Ministry of Agriculture, the government has made it clear that, while respecting the current legal framework and market rules, it would prefer to see Deoleo acquired by a ‘Spanish entity.’ The government’s core desire is for the new owner to ’safeguard Spain’s industrial interests.'
Meanwhile, bidder Dcoop, the Spanish cooperative, is actively lobbying the government, arguing that Coricelli’s offer was submitted after the deadline. Dcoop is calling on the government to activate its ‘anti-takeover shield’ mechanism to block the deal, which could see the native olive oil giant fall into foreign hands.
Major Shareholders Seeking an Exit Complicate the Deal
The takeover turmoil stems from Deoleo’s major shareholders publicly seeking to sell their assets. According to a previous filing with Spain’s National Securities Market Commission (CNMV), the company’s main shareholders are evaluating various strategic options, including the sale of all or part of the business.
Currently, Ole Investments, controlled by the CVC fund, holds a 50.9% stake in Deoleo, while two companies associated with the Alchemy fund, ASO Lux 3 and ASO Lux 4, collectively hold 45.9% (17.3% and 28.6%, respectively). The intentions of these major shareholders are a key internal driver behind the potential sale.
Will the ‘Anti-Takeover Shield’ Be Activated?
Whether the Spanish government will take concrete action to intervene is a key point of focus. The so-called ‘anti-takeover shield’ (escudo antiopas) is an investment screening mechanism, strengthened in the wake of the COVID-19 pandemic by Royal Decree-Law 34/2020 of November 17, 2020. It is designed to protect strategic companies related to national security, public health, and public order from foreign takeovers. In principle, this regulation is set to remain in effect until the end of 2026.
The Spanish government previously used this mechanism successfully to block the acquisition of train manufacturer Talgo by the Hungarian consortium Ganz-Mavag Europe. However, the law does not explicitly define which companies fall into the protected ‘strategic’ category, creating ambiguity in its application. Therefore, whether the government will classify Deoleo as a strategic asset and activate the ‘anti-takeover shield’ in the coming weeks will be the decisive factor in the outcome of this olive oil battle.
