Ukrainian agricultural and food company MHP has completed the acquisition of more than 92 percent of Spanish poultry and pork producer Grupo UVESA, with the European Commission having given the green light to the deal.
Ukraine’s largest poultry processor submitted a binding offer to acquire a minimum stake of 50.01 percent of UVESA back in January, writes Világgazdaság. According to Euromeatnews, as a result of the closed transaction, MHP’s stake exceeds 92 percent, handing it control of the fundamental operations and management of UVESA.
Authorities in Ukraine, Spain, Saudi Arabia, Serbia, Montenegro, and Kosovo have already approved the deal. The European Commission has also given its consent to the transaction, including under its rules on foreign aid and merger control.
“With the closing of the agreement, we are entering the integration phase. Our goal is to focus on operational excellence and sustainable development, building on UVESA’s strengths,” said John Rich, Executive Chairman of the Board of Directors of MHP. On March 20, MHP and UVESA signed the share purchase agreement for the transfer of 41 percent of the shares of the Spanish company. The deal also allows other UVESA shareholders to join the SPA (share purchase agreement) within one month of signing, so they can participate in the company under the same terms.
The companies also plan to expand exports and strengthen their presence in European and Middle Eastern markets.
“The integration process prioritizes operational synergies, knowledge exchange, and targeted investments in efficiency and product innovation,” Antonio Sánchez, president of UVESA, is quoted by VG. “The partnership with MHP opens a new and significant chapter for UVESA, which will be able to boost its growth and consolidate the sustainable production of high-quality food, guaranteeing total food security.”
Ukrainian MHP is a leading international agribusiness group, with its main production area being poultry. It exports its chicken meat and other chicken products to more than 80 countries, including EU states, the U.K., and Asia.
MHP also owns a Slovak company through its subsidiary Perutnina Ptuj, which operates in several countries in the region.
Earlier this year, one economist asked whether MHP was really in need of the massive loans handed to it by Brussels, especially to the detriment of local, member state farmers. He also pointed out the protests by Polish and Hungarian farmers, who “accused MHP of ‘flooding’ their markets with cheap chicken.”
