By Alessandro Parodi
(Reuters) -Brazil’s Moreira Salles family said on Monday it would launch a takeover bid for all shares of French bottler Verallia that it does not own and confirmed it would pay 30 euros ($32.51) for each, valuing the company at 6.1 billion euros.
Shares in the group, which makes bottles for champagne and cognac among other beverages, were up 4% to 29.3 euros in early trading. The stock has gained about 21% since the start of the year, fuelled by the merger talks.
BW Gestao de Investimentos (BWGI), owned by the Moreira Salles holding company Brasil Warrant Administracao de Bens e Empresas (BWSA), said in February it wanted to buy out Verallia, in which it already owns a stake of about 28.8%, but would assess a bid after the company’s full-year results.
The French group reported later in the month adjusted core earnings (EBITDA) slightly above consensus for 2024, and said it expected similar profit levels in 2025, with more than double free-cash-flow generation.
BWGI said it expects the initial offer period to close towards the end of the first half of 2025.
It added that it does not plan to delist the company, and that the offer will not lead to any job cuts.
The French spirits industry has been under pressure from Chinese tariffs on cognac and other drinks made in Europe and slowing sales in China, prompting companies such as LVMH-owned Hennessy to consider bottling some of their products in China.
This in turn raised concerns among labour unions that relocations would be a “disaster” for French workers.
Verallia makes most of its sales in Europe, including from bottling cognac in France.
“In a complex environment, BWGI’s objective is to reinforce the stability of Verallia,” the holding said in a statement.
Verallia said in a separate statement that it had set up an ad hoc committee to assess the offer, which it will discuss with BWGI in the coming weeks.
“The Board of Directors will meet to issue its reasoned opinion on the offer, after reviewing the independent expert’s report and the recommendations of the ad hoc committee”, it added.
($1=0.9228 euros)
(Reporting by Alessandro Parodi in Gdansk, additional reporting by Alban Kacher; Editing by Clarence Fernandez, Mrigank Dhaniwala, Michael Perry and Sharon Singleton)
