Premier said in a separate statement that it saw a “strong future” for an independent Premier Foods, with the foundations having been “laid for significant growth and shareholder value creation”.
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Shares in Premier crashed 17p, or almost 30%, following McCormick’s statement.
The US group’s final offer for Premier had been raised from 60p per share to 65p per share.
USA company McCormick has given up on its bid to buy rival Premier Foods following a due diligence review. However, the agreement was dependent McCormick’s takeover attempt failing to materialise.
Further to the announcement by Premier Foods plc (“Premier Foods”) on March 30, 2016, McCormick & Company, Incorporated (NYSE: MKC) (“McCormick”), a global leader in flavor, announces that it does not intend to make an offer for Premier Foods.
However, after the third approach, the Premier board agreed to talks for the first time with McCormick.
Premier Foods’ board acknowledged McCormick’s decision, while insisting the it “engaged extensively” with McCormick to supply the information requested.
Premier – whose brands also include Bisto, Homepride, Oxo and Sharwood’s, will now be free to focus on accelerating its own growth plans, including one involving cooperation with Japanese noodle maker Nissin Foods.
The agreement will see Premier’s products sold internationally through Nissin, Premier bringing some of Nissin’s range to the United Kingdom and a sharing of product R&D.
McCormick & Company, Incorporated is a global leader in flavor.
“The board also considers that the company’s longer-term prospects will be enhanced by the Co-operation agreement it has signed with Nissin Foods Holdings”.
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But some investors were left disgruntled after it emerged Premier told Nissin of the bid from McCormick before notifying the rest of its shareholders, while they were also angered by the board’s dismissal of earlier offers.
