ROMANIA: Smithfield has the Competition’s authorization for the takeover of Elit and Vericom | Progresiv

The Competition Council authorized the transaction by which Smithfield Romania will acquire Elit SRL and Vericom 2001 meat producer companies, owned by Dorin Mateiu businessman.

Smithfield fully acquired the two companies, according to an announcement published at the end of September on the Hong Kong Stock Exchange, for an undisclosed amount.

“The competition authority assessed this economic concentration from the point of view of its compatibility with a normal competitive environment under the Regulation on economic concentrations. As a result of the analysis, the Competition Council found that this operation does not raise significant obstacles to effective competition, especially as a result of creating or strengthening a dominant position in the relevant markets identified”, according to a press release published on the institution’s website.

Smithfield Romania SRL is part of the Smithfield Foods, Inc. group from USA, which in turn is part of the WH Group Limited from China. The latter one acts as an investments holding type company being mainly involved in production of pigs, production and marketing of fresh pork meat and packaged meat. In Romania, the activity of Smithfield Foods, Inc. group is mainly focused in pig breeding and the sale of live pigs, as well as the production and marketing of fresh pork.

Elit, one of the most important meat processors in Romania, went out from insolvency this year. The company ended 2016 with a turnover of 75 million euros and a profit of about 8 million euros. In turn, the Vericom cold cuts factory reported last year a turnover of over 21 million euros and a net profit of 1.6 million euros.

In August, the Chinese from the WH Group acquired Pini Polska, Hamburger Pini and Royal Chicken in Poland as part of their expansion strategy in Europe.

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Smithfield Ferme operates 46 farms in Timis and Arad counties, along with four swine breeding units and two combined feed factories.