Posted on May, 14, 2024 at 10:17 am
The European Commission has approved the acquisition of sole control of East Grain of Romania by Agrofert of Czechia.
The Commission recently concluded that the notified transaction would not raise competition concerns, given the companies’ limited combined market position resulting from the proposed transaction. The notified transaction was examined under the simplified merger review procedure, the Commission said.
East Grain’s main activity is the trade of cereals and oilseeds, but it also provides several adjacent services such as logistics, storage, processing and integration services. East Grain has a presence in Romania, Hungary and Serbia.
Agrofert is the largest group of companies active in the Central European agriculture and food industry, but it is also a major fertilizer producer, which already indicates the direction in which East Grain will diversify its activities. Agrofert’s investment comes against the backdrop of East Grain’s growth, which has averaged a CAGR of 22.5% over the last five years. Agrofert said the majority stake (65%) in East Grain means a well-founded launch pad into the Romanian agri-commodities market to complement its existing fertilizer distribution network in Romania.
“We are looking forward to putting our 30 years of experience to good use for the East Grain Group,” said Libor Němeček, Agrofert’s director of mergers and acquisitions and corporate finance. “Our investment will enable the group to exploit new opportunities, increase its capacities and expand its market presence.”
Tamás Vincze, chief executive officer of East Grain, said the company will take advantage of Agrofert’s “countless new tools that will support our long-term growth.”
“Agrofert is the partner with whom we will be able to considerably increase the added value created by the East Group in the regional market,” he said. “I believe this transaction is unique in the Romanian agribusiness. It is not an exit but a long-term partnership between an established Romanian company and a major European player.”
Source: World Grain