Spanish food group Ebro Foods has purchased Australia-based Ricegrowers, which trades as SunRice, for A$600m (US$578m).
Ebro, which yesterday announced the acquisition of the rice division of fellow Spansih food maker SOS Corporacion Alimentaria, confirmed it was in talks to buy SunRice last month.
As part of the transaction, Ebro will enter into a “continuity undertaking deed poll”, it said today (26 November), which sets out a number of principles related to SunRice and its business after the acquisition.
These include the purchase of rice crops, the establishment of a “Grower Advisory Board” and the commitment to research and development.
The transaction is subject to the approval of SunRice shareholders and the Australian courts.
SunRice shareholders are expected to vote on the transaction in March and, subject to approvals, the deal is expected to be completed in April.
“The board of SunRice unanimously recommend that its shareholders vote in favour of the transaction, subject to no superior proposal emerging and confirmation by an independent expert that the transaction is in the best interests of its shareholders,” Ebro said.