Australia’s United Malt To Be Acquired By France’s InVivo

United Malt Group, which is a firm based in Australia, has said that it has secured an agreement deal for AUD 1.5 billion, equivalent to $999 million. The takeover deal has been offered by Malteries Soufflet, which is a division of the French agribusiness known as InVivo.

United Malt agrees to a $1 billion takeover deal

The takeover deal in question will likely result in the creation of the largest malt producer globally. Once this takeover deal is complete, it will double the size of the malt business at InVivo three years earlier than what was initially planned.

In a report by Reuters, the Chief Executive at United Malt, Thierry Blandinieres, noted that the takeover deal would play an instrumental role in increasing the size of the company. The takeover offer was first released in March.

The shares of United Malt have made a significant recovery, having gained by 8.64% in the last 24 hours. The stock is now trading at AUD 4.78, while the offer price stands at AUD 5 per share. The cash offer is also an over 40% premium to the closing price of AUD 3.4 by United Malt on March 24 before this offer was first revealed.

The deal in question is still pending review by regulators. The Foreign Investment Review Board (FIRB) of Australia needs to give the green light for the deal to be approved. The shareholders at United Malta also have to vote for the transaction to be approved. A variety of regulatory requirements also have to be met.

One of the main deals in Australia

Australia has reported a significant increase in the number of deals that have been secured this year. The trend differs from what has been seen across the Asian region. Central banks across the larger Asian region have reported a massive increase in interest rates, which have slowed down economies and hampered activity related to mergers and acquisitions.

United Malt is among the fourth-largest commercial maltster globally. The company is tasked with producing bulk malt, with the target client being craft brewers, brewers, food companies, and distillers. The company also boasts of having processing plans in many countries, such as Australia, Britain, Canada, and the United States.

Malteries Soufflet is one of the largest malt producers globally. The platform operates malt houses across Africa, Asia, Europe, and Latin America. The massive presence will trigger more growth for United Malt.

The Chairman of United Malt, Graham Bradley, released a statement saying that the board at the company believed that the offer reflected the value of the asset portfolio at the company, and it also anticipated significant improvements across the short-term earnings outlook.

The board at the company has also shared a unanimous recommendation for the shareholder to vote in favor of the proposal. On the other hand, in the case of InVivo, the acquisition is part of the company’s goal to emerge as the largest malt producer globally in just five years.