Shares of Deoleo, the world's largest olive oil company, plummeted Thursday after two rivals announced plans to acquire the company, a deal that would further consolidate Spain's dominance in the sector.
Spanish olive oil firms DCOOP and Acesur will each hold a 50% stake in the company, resulting in a new olive oil giant in the region.
The deal is intended to boost olive oil consumption worldwide and support farmers in creating value through the supply chain, DCOOP said in an announcement.
Deoleo was last trading down 19%. However the stock is up around 55% since the beginning of the year as it's benefited from a moderation in olive oil prices that has helped lift U.S. sales.
The stock gained over 20% on Aug. 19 when news of a potential takeover battle emerged.