CHISINAU (Moldova), October 5 (SeeNews) – Moldovan agri-industrial group Trans-Oil is planning to buy the edible oil plant of its Serbian peer Victoria Group based in the town of Sid for 100 million euro ($118 million), Serbian media reported.
Negotiations between the two companies have been ongoing for months, Serbian news portal Agrosmart reported on Friday, quoting unnamed sources from agribusiness circles.
According to the same sources, Trans-Oil also intends to expand in Croatia, where it is currently negotiating the takeover of Cepin edible oil factory. The factory in Cepin, in eastern Croatia, is the country’s leading oilseed processor with an annual processing capacity of 150,000 tonnes and production of 32 million litres of refined edible oils per year, according to data published on its website.
Victoria Group is one of Serbia’s leading agribusiness companies and one of the largest producers, exporters and investors in both Serbia and the region. In June, Serbian diversified conglomerate MK Group completed the acquisition of a 67% stake in Victoria Group.
The Victoria Oil edible oil plant has a production capacity of 14,000 litres per hour, according to information published on Victoria Group’s website.
Trans Oil is the largest buyer and exporter of cereals and oilseeds in Moldova. The group operates 16 storage facilities across the country capable of storing more than 750,000 tonnes simultaneously, two vegetable oil-extraction factories – in Balti and Ceadir-Lunga – with daily production capacity of 1,200 tonnes and 400 tonnes, respectively.
It also owns two grain terminals and a terminal for sunflower oil in the International Free Port of Giurgiulesti, as well as a number of agricultural, transport and infrastructure enterprises, according to data posted on its website.
In July, Fitch Ratings said it affirmed Trans-Oil’s long-term foreign and local currency issuer default ratings (IDRs) of ‘B’ with a stable outlook.
In April 2019, the International Investment Bank (IIB) said it granted a loan to Trans-Oil to finance the acquisition of Romanian vegetable oil producer Ultex. The loan, whose value was not disclosed, was to be used for the development and technical upgrade of Ultex’s vegetable oil production plant.
($= 0.8505 euro)