Ferrero seeks to buy UK chocolate maker for €155m

Ferrero, maker of Nutella, has offered to buy British chocolate firm Thorntons for £112m (€155m), marking a rare acquisition by the Italian group.

The deal, backed by the board of Thorntons, brings together two of Europe’s best-known chocolate makers. It also marks the first move by the maker of Ferrero Rocher pralines since the death of its patriarch Michele Ferrero earlier this year.

Ferrero’s death rekindled speculation about a possible takeover of the company by rivals such as Mondelez International, Nestle, Mars, and Hershey.

However, the company has repeatedly excluded the possibility of a sale, whileCEO Giovanni Ferrero said it would consider growing through acquisitions to gain critical mass and be more competitive internationally.

Shares in Thorntons rose as much as 42.9% after the announcement.

The company, a familiar name in Britain, has been struggling in recent months after an unexpected cut in orders from two of its grocery partners and warehousing problems at its UK commercial business. Its chief executive said last month that he was stepping down.

Thorntons directors said the all-cash offer was “fair and reasonable” and said they intended to unanimously recommend that shareholders accept the offer.

Reuters