Blog: Snow falls but M&A activity heats up
Michelle Russell | 22 December 2010
Even in the run-up to Christmas, the M&A merry-go-round keeps on turning.
Following the news this week that French dairy co-op Sodiaal has finalised plans to buy cheese maker Entremont Alliance, another significant piece of M&A hit the headlines.
Dutch food ingredients group DSM announced yesterday (21 December) that it has struck a deal to buy US-based Martek Biosciences in an all-cash transaction worth US$1.09bn. The transaction, DSM said, will add a "new growth platform for healthy and natural food ingredients for infant formula and other food and beverage applications".
CEO and chairman Feike Sijbesma has insisted that the deal is a "very attractive and strategic opportunity" for the Dutch firm, and said that it now plans to expand Martek's "strong position" in infant formula worldwide.
The all-cash transaction sent DSM shares up almost 4% on the Amsterdam Stock Exchange yesterday and analysts agreed that DSM's acquisition of Martek could benefit both firms.
Petercam analyst Jan van den Bossche told just-food: "It is a logical step given that they had an exclusive supply relationship with Martek. They know each other already pretty well and extensively, so in that sense, from management and cultural integration points, it seems to be a very clean fit."
More M&A news emerged in the UK today with food tycoon Ranjit Boparan, a shareholder in Northern Foods, admitting he could launch a hostile takeover bid for the food maker. Northern, the UK food group, is planning to merge with Ireland's Greencore. Shareholders are set to vote on those plans next month.
Boparan has been amassing a stake in Northern since its plans to merge with Greencore were announced last month. He currently holds 6.6%. Will he table an offer for the business? We will more than likely have to wait until after Christmas?
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....
The Obama administration appears to have conceded the landmark Trans-Pacific Partnership (TPP) trade deal will not be pushed through in the lame-duck session of Congress before Donald Trump is inaugur...
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- How Tyson's new CEO plans to grow the meat group
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti