Posted on May, 9, 2024 at 07:07 am
The European Commission said on Wednesday it has approved the acquisition of sole control in Romanian agricultural products company East Grain by Czech peer Agrofert.
The Commission analysed and authorised the deal under the EU Merger Regulation, concluding that the transaction would not negatively affect competition given the limited combined market position resulting from the proposed deal, it said in a statement.
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Agrofert announced in November 2023 that it would acquire a 65% stake in East Grain for an undisclosed price.
"Agrofert's entry represents the most significant foreign investment in Romania's agricultural sector in recent years. Agrofert's investment will allow East Grain to further expand and diversify. In return, Agrofert will have access to the Romanian market for agricultural commodities," the Czech company said at the time.
In 2022, East Grain booked a net profit of 16.9 million lei ($3.65 million/3.39 million euro) on a net turnover of 714.3 million lei, according to the latest data available from Romania's finance ministry.
Founded in 2007 and based in the northwestern city of Cluj-Napoca, East Grain initially focused on trading malted wheat in the grain markets of Romania and Hungary, before expanding its portfolio of products to include oilseeds, raw materials for the feed industry, and fertilizers.
Source: See News