Cargill to mix culinary oil and cereals

US giant Cargill, the world’s leading cereal trader whose turnover reaches $60bn a year is interested in increasing its presence on the Romanian market by buying a culinary oil factory, industry sources say.

The representatives of Cargill, a group that bought $26 million worth of Romanian silos following the takeover of Comcereal Alexandria last year, have already inspected two culinary oil factories belonging to Topway Industries’ Craiova Group and should pay a visit to Ultex Tandarei soon. The Americans are also interested in Argus Constanta, but the takeover of this particular facility could be complicated by the fact that it is listed on the RASDAQ and some of the employees (who control the company) are not willing to sell.

Topway Industries’ main shareholder is the investment fund Baring Central Europe Fund (BCEF). Ultex Tandarei was bought by businessman Vasile Nitescu in late last year.

“Cargill is still interested in the Romanian market. We want to expand but nothing is yet certain with regards to acquiring a culinary oil factory in Romania,” says Andrei Grigore, Cargill Agriculture SRL’s chief operating officer.

“We are always on the lookout for potential acquisition targets on the Romanian market,” Grigore explained.

Culinary oil industry sources say another player, namely Agricover Buzau which owns a facility in Buzau, is in its turn interested in buying another culinary oil factory.

Agricover Buzau, which holds the Ulvex and Soreanca brands, is controlled by ICB Group, a business developed by two Iranian citizens that also includes Prodal’94, the maker of Stalinskaya vodka, Wembley gin and Fancy and Passion brandies.

BCEF bought into Topway in 1999, following a $9.5 million capital increase, and began its exit in 2002 when it sold the margarine and ketchup division of the company to Norway’s Orkla Group.

The second stage of the exit occurred at the end of last year when Topway Industries sold one of its three culinary oil factories, Ultex Tandarei, to Romanian businessman Vasile Nitescu.
laurentiu.ispir@zf.ro ; stelian.negrea@zf.ro