MHP Expands European Influence with UVESA Acquisition Deal
MHP Expands European Influence with UVESA Acquisition Deal
MHP has recently signed a Share Purchase Agreement (SPA) with shareholders who collectively own over 41% of UVESA, a notable player in the poultry production sector. This strategic agreement marks an important step for MHP as it seeks to bolster its footprint in the European market, enhancing its services and product offerings in the agri-food industry.
By entering into this SPA, MHP aims to solidify its investment in the Spanish poultry sector. The acquisition process will see MHP purchasing shares at a determined price, which signifies the company’s commitment to integrating UVESA into its operations while also accommodating other existing shareholders.
Key Terms of the Acquisition
Under the conditions established in the SPA, MHP has set a share price of EUR 225, with additional contingent considerations possible, reaching up to EUR 21.43 per share, pending certain criteria being met post-transaction. The agreement extends an invitation for other UVESA shareholders to join this acquisition framework, offering them equitable participation within a month of the initial signing.
This comprehensive approach not only facilitates a smoother transition but also encourages a cohesive partnership as MHP integrates UVESA into its broader operational strategy. The transaction is expected to be finalized upon receiving necessary regulatory approvals, which include mergers and foreign subsidies clearance by relevant authorities.
Statements from Leadership
Dr. John Rich, Executive Chairman of MHP's Board of Directors, conveyed the company's commitment to nurturing productive partnerships that foster sustainable growth. He remarked, "This collaboration with UVESA aligns with MHP’s core values of innovation and community impact. We are excited to support UVESA's advancements and look forward to enhancing our collective market presence."
In parallel, Antonio Sánchez, President of UVESA, expressed a shared enthusiasm regarding the future of this partnership. He stated, "Aligning with MHP represents a pivotal opportunity for UVESA to further its objectives while staying true to our community-centric approach. We are dedicated to maintaining high-quality standards and serving our customers effectively with MHP's support. Together, we will push boundaries and explore new market potentials."
The Importance of Regulatory Compliance
Obtaining regulatory approval is critical for ensuring that the acquisition goes forward without any legal obstacles. MHP has already received backing from the Government of Spain regarding this venture. This further asserts MHP's reliable and responsible investment strategy within Europe’s vibrant agri-food sector.
About MHP
MHP is a leading international agri-food company listed on the London Stock Exchange, dedicated to producing nutritious and high-quality food products. With operations spanning agriculture, food production, and retail, MHP has established itself as a major industry player, operating manufacturing facilities and subsidiaries across various regions.
The company employs over 36,000 individuals, ranking among the top employers in its home country, according to prestigious evaluations. MHP has a global reach, exporting products to more than 80 nations while managing a substantial agricultural land portfolio in Ukraine.
In addition to its commercial endeavors, MHP underlines its commitment to economic stability and food security in Ukraine, particularly emphasized during ongoing challenges in the region. The company actively supports community initiatives through partnerships that enhance local living conditions.
About Grupo UVESA
Grupo UVESA has long been a leader in Spain’s food industry, showcasing over six decades of dedication to quality in the poultry and feed sectors. Its vertically integrated model allows for rigorous quality control throughout the production process, ensuring high safety standards.
UVESA’s poultry business boasts state-of-the-art facilities equipped with advanced technology and strict process governance, making it one of Spain's foremost chicken producers. Their commitment also extends into pork production and feed manufacturing, establishing them as reliable suppliers in these sectors.
As UVESA continues to innovate and expand, it holds strong to its responsibility of delivering exceptional products to its customers, reflecting an enduring dedication to the communities it serves.
Frequently Asked Questions
What does the MHP-UVESA acquisition entail?
MHP signed an agreement to acquire 41% of UVESA's shares, strengthening its presence in the European poultry market.
What is the share price in the SPA?
The agreed acquisition price is EUR 225 per share, with potential additional considerations based on specific post-transaction criteria.
What is the significance of regulatory approvals?
Regulatory approvals are essential to ensure the merger complies with legal requirements and is free from legal challenges.
Who leads MHP and UVESA?
MHP is led by Dr. John Rich, while Antonio Sánchez serves as the President of UVESA.
How does MHP support Ukrainian communities?
MHP actively participates in community initiatives and supports projects to enhance local living conditions and food security.
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