Comvita said a potential acquisition of the New Zealand-based manuka honey supplier from an unnamed party has been called off due to differences over price.

In April, the listed company said it was subject to a due diligence process from a third party as part of a confidentiality agreement.

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At that time, Comvita said: “This process, which has been ongoing for several months, is to enable the third party to assess the potential acquisition of all or substantially all the shares in Comvita, whether by way of takeover, scheme of arrangement, amalgamation or other business combination.” 

However, in a statement today (21 May), Comvita said it “could not bridge the considerable distance between us on price and therefore, Comvita directors unanimously agreed to withdraw from the process”.

The company added: “The subsequent discussions between Comvita and that third party have now concluded with no agreement on a transaction. The due diligence process and further consideration of any proposal to acquire Comvita, is now at an end.”

When Comvita disclosed the takeover interest in April, the firm said it expects to book lower after-tax earnings than was previously anticipated due to unfavourable weather conditions.

It expects after-tax operating earnings for the year to 30 June to be around NZD8-11m (US$5.9m-8.1m), compared to its initial estimate of “greater than” NZD17.1m.

In today’s statement, the company added: “This most recent approach could have, in the unanimous opinion of directors, been very positive for the company and ‘NZ Inc.’ in driving the Comvita brand forward into new markets and new sales channels.”