Smithfield negotiates Salonta takeover

The US pork industry giant Smithfield, whose annual sales reach $9bn, is proceeding with its "silent" expansion on the Romanian market. It has started talks for the acquisition of the raw-dried charcuterie factory Salonta Sibiu. This company is 70% owned by Agrotorvis Timisoara, which in its turn is held by Italian investors and by a local charcuterie producer, Principal Construct Craiova. Industry sources say the transaction is worth 2.5 million euros. Early this year Smithfield entered the Romanian pork market in full gear when it bought 70% of the assets of the former swine fattening complex Com-Tim Timisoara from Agrotorvis. At the beginning of this month the Americans struck a deal with those holding the rest of the assets, namely the Com-Tim Grup that belongs to a Romanian investor and to a group of Australian investors. The whole deal was estimated at about $40 million. Although it already has a large capacity charcuterie facility (part of Com-Tim), Smithfield wants to buy the Salonta-based facility because it specialises in raw-dried charcuterie, unlike the other factory, which makes more general products. ZF