The European Commission (EC) has approved the acquisition of Romania’s East Grain by Czech company Agrofert, World Grain wrote.
Making its assessment under its simplified merger review procedure, the EC concluded that the acquisition would not raise competition concerns as any change to the companies’ combined market position resulting from the proposed transaction would be limited, the 13 May report said.
Active in Romania, Hungary and Serbia, East Grain’s main activity is cereals and oilseeds trading, but it also provides a range of related services including logistics, storage, processing and integration services.
The largest group of companies active in the Central European agriculture and food industry, Czech company Agrofert is also a major fertiliser producer, according to the report.
Agrofert’s investment followed a period of growth for East Grain, which had averaged a CAGR of 22.5% over the last five years, World Grain wrote.
Agrofert said its majority stake (65%) in East Grain provided it with a launch pad into the Romanian agri-commodities market to complement its existing fertiliser distribution network in Romania.
“Our investment will enable the group to exploit new opportunities, increase its capacities and expand its market presence,” Agrofert director of mergers and acquisitions and corporate finance Libor Němeček was quoted as saying.
East Grain CEO Tamás Vincze said the acquisition by Agrofert would help support the company’s long-term growth.
“It is … a long-term partnership between an established Romanian company and a major European player,” he added.
