The takeover frenzy that has seen domestic PATE and tinned meat producers receiving new owners is continuing apace. Orkla Foods Romania has made a bid for the number two of the market, Prod. Ardealul Covasna, the owner of the Ardealul brand.
Orkla Foods Romania, a Norwegian-held company, makes mustard, sauces and margarine under the brands Bunica, Tomi, Wiesana, Fruhstuck and La minut, and logged $18 million turnover last year. Prod. Ardealul’s turnover stands at 10 million euros.
Meat industry sources say the two partners have been negotiating the deal for over two weeks. The quoted sources even say that the Romanian PATE market leader, Scandia Sibiu, has also become involved, having made “invitations” to Orkla Foods Romania for talks concerning a possible takeover.
Less than a week ago, the Czech foods company HAME, bought more than 60% in Romconserv Caracal, the fifth player on the PATE and tinned meat market. The same sources say another player on this market, Antrefrig Bucharest, has been looking for an investor with regard to a possible takeover for more than a year now. Its Iranian owners may have dropped their plans to sell the controlling interests, however, following the failure of negotiations in this respect.
Nicolae Vranceanu, chief executive of Prod. Ardealul, denies alleged negotiations for a sale to the Romanian branch of the Norwegian foods group, Orkla Foods, yet admits the two companies have been in contact. “It’s not about negotiations, but about agreeing on the terms to export tinned meat for Orkla Foods,” Vranceanu says. When Romconserv was acquired by HAME, Vranceanu stated that talks had been conducted with the Czechs for a possible takeover, though they had not agreed on the price. Talks had also involved the possibility of this company handling production for HAME.
Orkla Foods Romania is enjoying constant expansion at the moment, with regard to both the Romanian, the Eastern European and Baltic States market, where it has bought numerous local brands and production facilities.
It took over the margarine, ketchup and mayonnaise division of Topway Craiova two years ago and bought the fruit and vegetable processing lines of a company from Targoviste a few months back.
Aliz Kosza, Orkla Foods Romania’s executive manager denies rumours about a takeover of Ardealul. “This was just a visit we paid together with our food safety specialists to make sure Prod. Ardealul is compliant with our group’s standards,” Kosza says. However, she has recently stated that the company’s further expansion on the Romanian market is not out of the question.
“We are making bids and will negotiate with any company that has developed a strong brand on the Romanian market that is in line with our global policy,” Kosza specified at the time.
Sorin Minea, chairman of the Romanian Meat Association (ARC), which comprises most Romanian meat processors, says now is the time to buy a local brand cheap, given the hardships of the Romanian producers.
“Now that takeover bids by major multinational companies have grown in numbers, one can see who built a business to sell later and who didn’t. The latest market surveys indicate that the PATE segment is relatively open and still has room for competition,” Minea says.
stelian.negrea@zf.ro