Transaction of Rovensa postponed due to coronavirus pandemic

 

Uncertainty has never been a good friend to the pockets of investors, and the current coronavirus crisis has fully impacted the M&A business in Spain, where many ongoing transactions have been left in the air. The pandemic has left corporate operations worth EUR12.6 billion in a state of uncertainty, and this figure can be increased if their operations valued at over EUR100 million are included. In statements to the Economist, experts said, “Nobody wants to sign anything in a situation like this, not only because the rules of the game have changed under a state of crisis, but also because, depending on how long this situation lasts, the valuations of companies can vary greatly due to the effects of coronavirus on their businesses.”

 

“However, this crisis does not need to have a negative impact on the income statements of all companies, since some will also benefit from the current situation,” they added.

 

An example of a stalled operation is the sale of Rovensa, Bridgepoint's pesticide business. Despite the fact that the crisis would not necessarily affect the transaction, the owners decided to postpone the process indefinitely. This transaction was one of the most notable, and HSBC and JP Morgan were expected to be the coordinators of the process, with binding offers being received up to Friday, 27th March. The sale of Rovensa was going to be one of the most important transactions of the year, since the first offers exceeded EUR1,000 million. Four candidates advanced to the second phase, which are the Partners Funds, Pamplona, AEA and InVivo.

 

According to experts, the future of these operations will depend on how long the crisis lasts and affects Spain’s economic activity and the daily lives of almost all Spaniards.