Nutreco and DSM Mull Bid for Provimi

Nutreco and DSM are mulling a joint bid for Provimi, a French animal feed provider currently owned by the buyout shop Permira, Reuters reported, citing Dutch media reports. Provimi has been valued at as much as 2 billion euros, Reuters said.

(Reuters) – Dutch firms Nutreco and DSM are considering a joint bid for French animal feed firm Provimi, which has been put up for sale by private equity group Permira, a Dutch newspaper reported on Wednesday.

Sources told Reuters last month that Provimi, valued at as much as 2 billion euros, had attracted offers from animal feed group Nutreco, leading vitamin’s maker DSM, U.S. group Cargill and China’s New Hope Group.

Now Nutreco and DSM are looking at a joint bid and would carve up Provimi if successful, Dutch daily Het Financieele Dagblad reported on Wednesday, citing sources.

The animal feed business is highly fragmented, and analysts consider the industry ripe for consolidation. About one third of the industry is in the hands of big international groups, while many family-owned companies are active in local markets.

Nutreco has looked at buying Provimi twice before. DSM’s board member responsible for the nutrition operations, Stephan Tanda, said previously that DSM was not interested in all of Provimi, but would be interested in some of Provimi’s pre-mix businesses.

(Reporting by Sara Webb; Editing by David Cowell)