Deoleo Agrees to Sale After Rival Olive Oil Firms Team Up

A new heavyweight in olive oil

Two Spanish rivals, Dcoop and Acesur, announced plans to acquire Deoleo, which is described as the world's largest olive oil company. Under the plan, they would split ownership 50-50, creating a larger regional player. Deoleo said it has accepted the offer.

Based on the proposal, enterprise value is pegged at 520 million euros, while Dcoop had previously floated 470 million euros, according to reports. Dcoop said the deal is aimed at growing global olive oil consumption and helping farmers capture more value across the supply chain.

How the market is digesting it

Deoleo shares were last down 19.9% on Thursday after the announcement. Even with that drop, the stock is still up around 55% since the start of the year, helped by moderating olive oil prices that have lifted U.S. sales. The bid follows an intensifying contest that pitted Dcoop against multinational suitors from Italy, France, and Australia; when that battle first surfaced on Aug. 19, the shares climbed more than 20%.

"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 Deoleo CEO Cristóbal Valdés.

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What is happening in the olive oil backdrop

Spain is a leading producer and often serves as a global price reference for olive oil. Prices have swung sharply in recent years as harvests whipsawed, with climate change, water shortages, and pests and disease all playing a role.

In July, Valdés told CNBC that 2022 to 2024 was among the sector's toughest stretches, but that rains are helping steady prices. As he put it, "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."

The bottom line for investors

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