Paris, June 20 - France's leading sugar producer Tereos abandoned plans on Friday to bid for the sugar business of Danish food group Danisco, saying it would instead look for alternative acquisitions.
"After careful consideration of the Danisco Sugar case, Tereos reached the conclusion that too many uncertainties were attached to the bid process," Tereos said in a statement.
"Tereos will pursue the group's ambition to consolidate its global leadership position and will continue to evaluate the alternative assets that are up for sale," it said. In Copenhagen, Danisco shares fell 1.5 percent
The withdrawal leaves Germany's Nordzucker, the second largest player in Europe, as the sole remaining contender.
A source close to Tereos said the company had decided to pull out because the Danish group would not allow it to team up in a consortium with sugar beet planters.
"From the start, Danisco refused to negotiate with the planers. Agreements and partnerships with them are very important because without the beet, you can't have the sugar," the source said, asking not to be named.
Such co-operative ventures are common in French agriculture.
Les Echos business daily said Nordzucker had indicated it was willing to pay up to a billion euros for the business, leaving the French side wary about the price and future returns.
It said Tereos was now looking "actively" at the sugar division of Spanish group Ebro Puleva, which could be put up for sale, and Polish privatisation prospect Polski Cikier.