Deoleo stock climbed more than 20% on Wednesday after Spanish agri-food cooperative Dcoop emerged as the frontrunner in a competitive takeover process, having tabled a €470 million ($545 million) bid for the olive oil company.
Although no agreement has been reached yet, the process is nearing its conclusion, with a deal anticipated to close as early as September, according to CNBC, which cited Spanish newspaper El Economista. Dcoop is leading competing offers from Italian companies Coricelli, Bonifiche Ferraresi, and Newlat Food, French firm Lesieur, owned by Avril, and Australia's Cobram Estate Olive.
Deoleo, the maker of olive oil brands including Bertolli and Carbonell, reached its highest share price in a year on Wednesday and was headed for its strongest daily gain since March 2022.
A deal with Dcoop would bring together two significant Spanish olive oil operations, with the resulting company capturing around 15% of domestic consumption and holding an extensive stable of brands, according to CNBC.
Deoleo did not respond to requests for comment on the reports, and a Dcoop representative could not be reached.
Spain ranks among the world's top olive oil producers, alongside Italy and Greece, and serves as a global benchmark for prices. The sector has faced dramatic price swings in recent years driven by climate change, water scarcity, and disease pressures. Deoleo said that a period of price volatility has given way to more stable market conditions.