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«AgroInvest» — News — U.S. agribusiness’ start expansion into Central and Eastern Europe

U.S. agribusiness’ start expansion into Central and Eastern Europe

2012-01-05 17:10:37

The wave of mergers and acquisitions is starting to grow in size as the first acquisition deals have been agreed upon in 2012 as Archer Daniels
Midland entered Slovakia through the purchase of three elevators. Agribusiness giant stated that acquisitions are in line with the company’s strategy of expansion into Central and Eastern parts of Europe. The first step is executed with buying the elevators from Palma Group and Polnonakup Hont. Company has also acquired plant in Eastern Germany and is updating existing facilities in Europe. Other U.S. companies are not willing to fall behind their competitors. US-based Titan Machinery's purchase in November of a farm equipment dealer in the eastern European country of Romania marks another M&A deal by U.S. company in Europe.

CNH, the US-based maker of Case and New Holland tractors, last month joined a bidding war for Norwegian farm machinery maker Kverneland, in
which Kubota appears to have gained the upper hand, but which investors still believe may see a higher bid. Ukrainian Landkom is still in the
process of being acquired by Stockholm-listed Alpcot Agro after dismissing a rival approach from private equity group JadenFinch. It would not be a
surprise though if the deal is interrupted by another major U.S. agribusiness (even though such circumstance is less likely due to poor company
performance recently, getting close to hitting its all-time-low this week once again).
 

 

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