Deoleo Shares Fall 20% as Spanish Rivals Agree Takeover

Spain's olive oil industry is set for further consolidation after producers Dcoop and Acesur agreed to acquire Deoleo, the world's largest olive oil company. The deal, accepted by Deoleo, values the business at 520 million euros ($583.2 million) and gives each buyer a 50% stake.

Deoleo shares fell 19.9% on Thursday following the announcement, reflecting the market reaction to the takeover agreement. Despite the decline, the company's stock has gained approximately 55% since the beginning of the year, supported by moderating olive oil prices and stronger sales in the United States.

According to Dcoop's announcement, the acquisition aims to increase global olive oil consumption and help farmers generate greater value throughout the supply chain. The partnership will combine two major Spanish producers under a shared ownership structure.

Deoleo CEO Cristóbal Valdés described the agreement as a significant development for the company and the wider industry.

"This milestone marks the start of a new phase, built on solid foundations and with a long-term vision to continue creating value for the sector and all our stakeholders," said Cristóbal Valdés, CEO of Deoleo.

The agreement follows an increasingly competitive takeover process involving Dcoop and multinational companies from Italy, France, and Australia. Deoleo shares previously climbed more than 20% on Aug. 19 after news of the acquisition battle emerged. Dcoop had previously offered 470 million euros ($545 million) for the company.

Spain remains one of the world's leading olive oil producers and serves as an important global benchmark for prices. Developments in its production sector therefore have implications for international supply and commodity markets.

Olive oil prices have experienced significant fluctuations over recent years as production volumes changed between harvest seasons. Climate change, water scarcity, pests, and diseases have all contributed to supply uncertainty.

In July, Valdés told CNBC that the period from 2022 to 2024 had presented exceptional difficulties for the industry. He also pointed to improving rainfall conditions as a factor supporting price stabilization.

"The highly complex market cycle experienced between 2022 and 2024, which had a severe yet temporary impact on the industry, is now definitively behind us," Valdés said.