Glencore makes strategic acquisition in Constanta harbour

Glencore, one of the biggest trading houses in the world, has acquired over 51% in Barter Trading SRL Constanta, thereby expanding its business on the Romanian grain trade market.

The acquisition can be considered a strategic move since it involves the adding to Glencore’s portfolio of a grain and non-ferrous metallic waste trader that has contracts in region of 12 million euros and, as of this year, will become an operator in Constanta harbour based on the licence it holds.

Officials from Glencore and Barter Trading were unwilling to reveal details of the deal, but market sources valued the deal at between 2.5 and 4 million euros.

The move enables Glencore to strengthen its position strategically on the Romanian grain trade market, where it is quoted as one of the top four players, alongside US company Cargill, the Toepfer group from Germany and Dutch company Nidera.

The four players together control around 80% of the total Romanian grain trade of around two million tonnes yearly – an average of 200 million euros, according to some estimates.

The Competition Council approved the acquisition by Glencore Protein Romania SRL since the operation does not give it a dominant position on the market. According to the Competition Council, Glencore owns a further four companies on the grain, leguminous plants and seeds market: Glencore Romania SRL, Romsiloz Cereale SRL, Cerealcom Braila and Comcereal Braila.

Glencore’s current companies on the domestic market together created deals worth around 80 million euros in 2003, according to the latest accounting data submitted to the Ministry of Public Finances. This value does not include the turnover of Romsiloz Cereale, a company that was set up in December 2003.

Barter Trading was founded in 2000 as a private business owned by a number of individuals. Discounting Glencore’s new interest in the business, the remaining shares are held by Turkish investor Ayse Nesrin Kamaz, who owns 40%, and Cristina Serbanescu, the company’s general manager, who owns 9%.

The company’s turnover for 2004 was 25% higher than in previous year, when turnover reached over 9.7 million euros.

Barter Trading Constanta also owns a shoe polish factory and is involved in product transportation, market sources say.

Since the company was set up, its shareholders have invested some 2.5 million dollars (around 2 million euros). The company is planning a further investment programme of 5-6 million dollars (about 4 million euros). adrian.mirsanu@zf.ro