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Central Europe
October 26, 2018 www.intellinews.com I Page 11
Agrofert Group buys United Bakeries on second attempt
bne IntelliNews
Czech company Penam, a member of Agrofert group, has bought the single shareholder of United Bakeries, the leading Czech bread maker UB Hold- ing, reported the Czech News Agency (CNA) on Oc- tober 19. The transaction still needs to be assessed by the Office for the Protection of Competition.
Agrofert Group attempted to buy United Bakeries in 2010, however, the merger eventually collapsed, and the unrealised transaction was taken to court. The former co-owner of United Bakeries Marko Parik said that his company had “naively shown its entire hand to [Andrej] Babis” — Agrofert’s then owner, now the Czech prime minister — and he “had the company for lunch”, reports Hospodar- ske noviny.
The value of the new deal has not been disclosed. Cooperation with business partners and rela- tions with employees should continue in their current form.
“We are glad that we have reached agreement
to merge the United Bakeries with our company. In our opinion it is a necessary step to preserve the long tradition of Czech bakery production in
a very challenging and competitive marketplace. We hope that by this step we will be able to secure the long-term perspective of both companies,” said the chairman of the Penam board Jaroslav Kurcik to CNA.
Penam currently operates 11 bakeries and four
mills in the Czech Republic, mostly in Moravia. Last year turnover amounted to CZK3.6bn.
United Bakeries was created by the merger of the largest Czech groups Delta Pekarna and Odkolek. Last January, the bakery was dominated by the Luxembourg company Moulins de Kleinbettingen, which previously held part of United Bakeries’ shares. Previously the company was controlled by Jaroslav and Marko Parik. It has more than 1,000 employees working in 13 bakeries in the Czech Republic. Last year, the company posted revenues of CZK2.2bn.
The Agrofert Group is the largest player in the Czech agriculture and food industry, number two in the chemical industry and a major player in forestry and media. Last year, it employed approximately 33,000 people, of which 22,000 were in the Czech Republic. At the beginning of last year, the group was owned by Babis, who at the time was deputy prime minister and finance minister. In February, in line with the Conflict
of Interest Act, Babis transferred his shares to trust funds.
This is not the only purchase by Agrofert recently. Last week, German company Bauer Media Group has agreed to sell Bauer Media in the Czech Republic and Slovakia to Mafra publishing house. The value of the deal has not been disclosed,
the takeover also needs to be approved by the antitrust authority.