Tyson Foods mulling over acquisition in Romania

U.S.-based group Tyson Foods, the world leader in producing and marketing beef, pork, and chicken, is mulling over the purchase of a Romanian company. The Americans, who are already present in Romania through imports, are especially interested in buying Tec Miaco, the Romanian market leader, where the Romanian Investment Fund (RIF) and the Romanian American Enterprise Fund (RAEF) own a 45% stake.
RIF and RAEF entered the company in 1998, planning to exit after four or five years. Moreover, RIF’s life span ends next year, so the fund will have to liquidate all of its stakes by then.
“We have been in this company for more than four years and it’s normal to be looking for a sale opportunity. However, I cannot comment on our exit options,” Joel Hayes, an advisor with RAEF told Ziarul Financiar.
According to the chairman of the Romanian Poultry Producers Association Ilie Van, the American company sent its international operations director to Romania.
“He had talks with the Agriculture Ministry officials, who advised him to visit Agricola Crevedia (Tec Miaco) and Agricola Buzau, so that he could get an idea. He saw the facilities, the production environment and then went back to America to report to his superiors,” Van said.
Besides RIF and RAEF, another significant TEC Miaco shareholder is the company’s chairman and general manager Marius Iliev, who owns 45% of the shares.
“We are in talks with the Tyson representatives, but everything is in a very early stage. The American group is thinking about starting production in Europe, while Romania is the best place for raising chickens,” Iliev told Ziarul Financiar.
Tyson officials would not comment on their acquisition plans.
Tyson foods was established in 1931 and has remained a family business, even after floatation, despite the mergers and acquisitions that have sent annual turnover skyrocketing to more than 20 billion dollars. Tyson Foods was originally specialised in raising and processing chickens, but then became the world’s leader in the pork and beef department, as well.
Internationally, the US company is one of the main McDonald’s suppliers, with various partnerships having been concluded between the two enterprises. McDonald’s Romania officials would not comment on a potential investment by the American group.
“No comment. Let’s just wait for this to actually happen first and then we’ll see,” said Cristian Savu, communication director with McDonald’s Romania.