World’s largest olive oil company pops over 17% as rivals circle in takeover battle

[Zakana]

Shares of Spain'sDeoleojumped nearly 18% on Wednesday morning amid an intensifying takeover battle for the world's largest olive oil bottler and marketer.

The stock move comes amidreportsthat Spanish agri-food cooperative group Dcoop has offered 470 million euros ($545 million) for Deoleo, taking the lead in a takeover battle that includes Italian, French and Australian firms.

The sale is not yet finalized, Spain's El Economista newspaper reported, citing unnamed sources familiar with the matter, but it is said to be in its final phase, with a closing initially expected in September.

If completed, the sale would shore up Spain's leadership in a strategic sector by creating a new olive oil giant that would encompass a range of brands and secure a roughly 15% share of national consumption.

Spokespeople for Dcoop and Deoleo were not immediately available to comment when contacted by CNBC.

Alongside Italy and Greece, Spain is one of the world's leading producers of olive oil and a global reference for prices.

Prices of the precious commodity have swung dramatically from one season to the next, particularly as issues such asclimate change,water scarcityandpest and diseasepressures persist.

However, Deoleo —the maker of household olive oil brands such as Bertolli and Carbonell —recently toldCNBC that a period ofunprecedented volatilityhas unequivocally given way to more stable market conditions.

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