Shares of Deoleo, the world's largest olive oil company, fall after sale

The deal is valued at 520 million euros, but the market reacted negatively because this value does not correspond to the amount that will be received by Deoleo, nor to what will be passed directly to its shareholders.

The actual payment will be lower, as debts, financial adjustments and retentions provided for in the contract will still be deducted.

As it owns 50.99% of the holding, Deoleo S.A. estimates it will receive between 190 million and 200 million from the sale of its stake, according to a statement published on the website of the Comisión Nacional del Mercado de Valores, the Spanish capital market regulatory body.

This value, however, is not yet definitive and may change until the sale is completed. Furthermore, part of the resources will be held in an escrow account and, therefore, will not be immediately available to the company.

The buyer Dcoop is a Spanish cooperative that brings together more than 75 thousand farming families, while Acesur is a family company that owns brands such as La Española and Coosur. Under the agreement, each will have half of Deoleo's business.

The sale still depends on shareholder approval and authorizations in three countries. In Spain and the United States, competition authorities will assess the effects of the purchase on the market. In Italy, authorization will be required for Deoleo's local operations to come under the control of foreign investors.

The operation may also be affected by Bertolli's licensing agreements. The Japanese group Mizkan has two months after the announcement to inform whether it intends to terminate any of these contracts due to the change of control.

Deoleo estimates that the regulatory process will take between six and eight months. Until completion, both the final amount received by the company and the portion that will be retained as a guarantee may change. The statement does not say what the subsequent allocation of the resources will be.