Dive Brief:
- Cargill says it is pulling out of the bidding for Nutreco, the Dutch company that dominates the production of salmon feed for use in fish farms.
- The exit by Cargill leaves U.S.-based investment company SHV Holdings, which has bid $3.7 billion, as the sole suitor left in the pursuit.
- Cargill had been eyeing a solo bid for Nutreco after its earlier joint offer with private equity firm Permira Advisers LLP was rejected.
Dive Insight:
Cargill hasn't said why it decided to leave the takeover battle. Perhaps the price is too high (although certainly Cargill has the resources), or perhaps the company developed some concerns, perhaps over the difficulty of merging Nutreco's global operation into Cargill's existing businesses.
About the only thing clear is that Nutreco remains one of the world's most interesting companies, sitting atop what is likely the fastest-growing segment in global agriculture. So it shouldn't surprise anyone if another bidder emerges now that Cargill has bid adieu.