Aldeasa backs Autogrill takeover – 29/03/05 : Moodie Davitt Report

SPAIN. Spanish retailer Aldeasa said late Monday its board backed the improved €768 million takeover bid from Italian retail-to-catering chain Autogrill and recommended that its shareholders accept the offer.

Autogrill, whose bid is backed by Spanish-French tobacco company Altadis, is offering €36.57 a share, up from its previous offer of €33 a share. Aldeasa’s shareholders have until April 14 to accept the bid.

The offer has already been approved by the European Union and the Spanish market regulator.

In a statement released today, the European Commission said it had cleared the joint acquisition of Aldeasa by Autogrill and Altadis. After examining the operation, the Commission concluded that the proposed transaction, if the joint bid is successful, “would not significantly impede effective competition in the EEA or any substantial part of it and has therefore approved the concentration”.

The Commission’s examination of the deal showed that the “horizontal overlaps between the activities of the parties in the concession foodservice and airport retail sectors are very limited”, the statement said.

In its review, the Commission said it had also examined the “vertical” relationship between Altadis and Aldeasa since Altadis tobacco brands are sold at Aldeasa airport outlets. It concluded that the proposed acquisition would not give rise to any risk that competition would be reduced given the limited sale of Altadis tobacco brands at duty free outlets, together with the minor role of these outlets as a channel for the overall sale of tobacco products in Spain.

Altadis is Aldeasa’s largest shareholder with a 34.5% stake.

CHRONOLOGY OF A TAKEOVER: HOW THE ALDEASA STORY HAS UNFOLDED

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