Lactalis considers Romanian acquisition

The French dairy products producer, Lactalis, which makes $5.5 billion in annual sales, has bought five production facilities in the Republic of Moldova in a transaction that saw the group take over FoodMaster International.

The French group sells only imported products on the Romanian market (its best-known brand is President), but is now considering the acquisition of production units in Romania. “The Romanian market is very important and we will have to take a closer look at domestic production facilities. I believe it would be interesting to own plants in Romania and we have even had some talks with Romanian producers,” said Luc Morelon, communication manager at Lactalis.

Morelon did not reveal the identity of the companies the group may be interested in taking over, explaining that until a potential takeover in Romania is completed, Lactalis will keep on developing production of its fresh products range from its new facilities in the Republic of Moldova.

Analysts do not see the French becoming major players in Romania. “There are no customs incentives for dairy imports from the Republic of Moldova. This country has played an important role in facilitating access to Romania for dairy products from the Ukraine said to have been affected by the Chernobyl nuclear accident. On the other hand, entering the Romanian market at this point would come very late, as this move should have been made six to seven years ago,” said Florin Popescu, chairman of APRIL, an organisation that brings together the main local dairy producers.

According to Popescu, the French are not planning to buy a production facility in Romania, as the market is already dominated by four big players: Danone, LaDorna, Friesland and Campina. “The only uncharted territory is the country’s southern region. But to penetrate this market requires a large investment,” Popescu explained.

Lactalis has operations in 130 countries and has launched a massive acquisition programme in recent years, both on the French market and internationally.
stelian.negrea@zf.ro