# Australia’s United Malt agrees to $1 billion takeover offer from France’s InVivo Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-07-03 Category: Uncategorized Category URL: https://financedigest.com/category/uncategorized Meta Title: United Malt Group Ltd agrees to $1 billion takeover offer Meta Description: United Malt Group Ltd has agreed to a $1 billion takeover offer from French agribusiness InVivo, aiming to become the world's top malt producer. URL: https://financedigest.com/australias-united-malt-agrees-to-1-billion-takeover-offer-from-frances-invivohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-07-02t233936z2lynxmpej6106krtroptp4united-malt-grp-m-a-invivo-1736813811338-compressed.jpg) # Australia’s United Malt agrees to $1 billion takeover offer from France’s InVivo By Harish Sridharan and Sybille de La Hamaide (Reuters) -United Malt Group Ltd said on Monday it agreed to a A$1.5 billion ($999 million) takeover offer from Malteries Soufflet, a branch of French agribusiness InVivo, in a deal aimed at building the world’s top malt producer. The move will allow Malteries Soufflet to expand its activities geographically and supply new markets, including China and Oceania, InVivo Chief Executive Thierry Blandinieres told Reuters. Joining both gives us a great platform to capture the growth of the beer market,” said Blandinieres, who [expects the deal](https://www.financedigest.com/u-n-expects-ukraine-russia-grain-deal-to-be-implemented-in-a-few-weeks-officials.html "U.N. expects Ukraine-Russia grain deal to be implemented in a few weeks -officials") to close around October. Shares of United Malt jumped 9.1% to A$4.8 in early trading, 20 cents off the [offer price of A$5 a share](https://www.financedigest.com/world-shares-rally-as-china-offers-markets-a-hand.html "World shares rally as China offers markets a hand"). The stock was the top percentage gainer on the benchmark index. The [cash offer](https://www.financedigest.com/elon-musk-targets-twitter-with-41-billion-cash-takeover-offer.html "Elon Musk targets Twitter with billion cash takeover offer") represents a premium of 45.3% to United Malt’s closing price of A$3.44 on March 24, before it was first disclosed. The deal now needs approval from Australia’s Foreign Investment Review Board (FIRB) as well as a [vote in support by United Malt’s shareholders](https://www.financedigest.com/amazon-faces-shareholder-vote-on-treatment-of-warehouse-workers.html "Amazon faces shareholder vote on treatment of warehouse workers"), among other regulatory requirements. United Malt is the world’s fourth-largest commercial maltster, producing bulk malt for brewers, craft brewers, distillers and food companies. It has processing plants in Australia, Canada, the United [States and Britain](https://www.financedigest.com/irish-state-britains-natwest-to-sell-6-stake-in-permanent-tsb.html "Irish state, Britain’s NatWest to sell 6% stake in Permanent TSB"). Malteries Soufflet, one of the world’s biggest malt producers, runs 28 malt houses [across Europe](https://www.financedigest.com/white-bullets-piracy-demonetising-programmes-drastically-reduce-ad-revenues-to-piracy-websites-across-europe-analysis-finds.html "White Bullet’s piracy demonetising programmes drastically reduce ad revenues to piracy websites across Europe, analysis finds"), Latin America, Asia and Africa. The acquisition is part of InVivo’s effort to become the [world’s top](https://www.financedigest.com/top-5-restaurants-in-the-world.html "Top 5 restaurants in the world") malt producer. It acquired agribusiness peer Soufflet last year and [signed an agreement](https://www.financedigest.com/french-unions-unanimously-sign-wage-agreement-with-edf-company-says.html "French unions unanimously sign wage agreement with EDF, company says") in January to take over Belgian malthouse Castle Malting. It also intends to [grow malt volumes organically](https://www.financedigest.com/jewelry-organizer-market-is-expected-to-grow-at-a-cagr-of-approximately-over-2022-2030.html "Jewelry Organizer Market is expected to grow at a CAGR of Approximately Over 2022-2030"), Blandinieres said. In a statement, United Malt Chairman Graham Bradley [said the company’s board believed](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)") the offer appropriately reflected the value of its asset portfolio and the anticipated improvement in its near-term earnings outlook. The company’s board has unanimously recommended that [shareholders vote](https://www.financedigest.com/most-twitter-shareholders-vote-in-favor-of-sale-to-musk-sources.html "Most Twitter shareholders vote in favor of sale to Musk-sources") in favour. Australia has seen greater dealmaking this year, largely in contrast to the broader Asian region, where the pressure of high [interest rates](https://www.financedigest.com/uks-berkeley-forecasts-20-drop-in-house-sales-as-interest-rates-rises-weigh.html "UK’s Berkeley forecasts 20% drop in house sales as interest rates rises weigh") has damped mergers and acquisitions (M&A) activity. ($1=1.5011 Australian dollars) (Reporting by Harish Sridharan in Bengaluru and Sybille de La Hamaide in Paris; Editing by Jamie Freed and Clarence Fernandez) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---