The major shareholder of Kverneland, the Norwegian maker of farming implements, has reportedly sold its shares to Kubota, giving the Japanese tractor maker the upper hand in acquiring control of the firm.
Umoe, the investment group founded by Jens Ulltveit-Moe, chairman of Kverneland, sold its 31.8% share to Kubota, the Japanese tractor maker, for NOK10.50 a share, or $276 million. This was NOK2.00 higher than Kubota originally offered last Friday. CNH Global and Chery Heavy Industries of China had offered NOK9.50 to Kverneland shareholders.
Published reports also say that Kverneland stopped further due diligence efforts by CNH and Chery.
Reportedly, Kverneland said, "As a consequence of the agreement between Kubota and Umoe, Kverneland has decided to terminate the due diligence processes being conducted by CNH Global and Chery Heavy Industry with immediate effect."