Moreira Salles Family Eyes Verallia Takeover: A Strategic Move?

The Moreira Salles family, Brazil's billionaire clan, has set its sights on French glass packaging giant Verallia. BW Gestao de Investimentos (BWGI), owned by the family's holding company Brasil Warrant Administracao de Bens e Empresas (BWSA), has confirmed its interest in acquiring the company, sending Verallia's shares down as much as 10% on Monday. But why is the family so keen on Verallia, and what could this takeover mean for the company and the industry?

First, let's address the elephant in the room: the proposed offer price of €30 per share. This price represents a significant premium of about 12% above the closing price on Thursday, 30 January 2025. While the offer price is undoubtedly attractive, it's essential to consider Verallia's intrinsic value and the strategic motivations behind the Moreira Salles family's interest.