Spanish olive oil giant Deoleo, the world's largest olive oil company, saw its shares plummet 17.8% on Thursday following an announcement that two Spanish rivals, Dcoop and Acesur, have agreed to acquire the company in a consolidation deal [1]. Under the agreement, Dcoop and Acesur will each hold a 50% stake in Deoleo, creating a new olive oil powerhouse in the region [1]. The deal is intended to boost olive oil consumption worldwide and support farmers in creating value through the supply chain, according to Dcoop's announcement [1]. Dcoop had previously offered 470 million euros ($545 million) for Deoleo [1], and the acquisition represents the culmination of an intensifying takeover battle between Dcoop and multinational firms from Italy, France, and Australia [1].
Despite Thursday's sharp decline, Deoleo's stock has demonstrated significant strength in 2024, up approximately 55% since the beginning of the year, benefiting from a moderation in olive oil prices that has helped lift U.S. sales [1]. The stock had already gained over 20% on August 19 when news of the takeover battle first emerged [1]. The acquisition comes amid a period of stabilization in the volatile olive oil market, which experienced dramatic price swings between 2022 and 2024 due to climate change, water scarcity, and pest and disease issues [1]. Deoleo CEO Cristóbal Valdés stated in July that "the highly complex market cycle experienced between 2022 and 2024, which had a severe yet temporary impact on the industry, is now definitively behind us," citing favorable rain trends as a stabilizing factor [1]. Spain remains one of the world's leading olive oil producers and is often used as a global reference for commodity prices [1].
CONCLUSION
The acquisition of Deoleo by Dcoop and Acesur represents a significant consolidation in Spain's dominant olive oil sector, though the immediate market reaction was negative with an 18% stock decline. Despite the sharp one-day drop, Deoleo's year-to-date performance remains strong at +55%, reflecting broader market recovery as olive oil prices stabilize following the volatile 2022-2024 period.