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Cargill to acquire full ownership of Hungary’s Agrograin

by 5m Editor
13 July 2007, at 11:26am

HUNGARY - Cargill has begun the process of acquiring full ownership of Agrograin, one of the leading grain and oilseeds trading and storage companies in Hungary.

With headquarters in Budapest, 23 locations around the country and about 290 employees, Agrograin has been a joint venture partner with Cargill since 1995. The deal will be subject to regulatory and other approvals.

The intended acquisition fits closely with Cargill’s strategy of developing its origination capacity and increasing its competitiveness in the grain and oilseeds arena in Central and Eastern Europe. As well as trading activity, which covers the whole of the Hungarian market, Agrograin has two export facilities on the River Danube.

“Hungary plays an important role as a significant grain and oilseed exporter and the country’s surplus is expected to grow in the years ahead”, says Rod Sanderson, Cargill’s existing representative in the Agrograin business.

“We are delighted to be able to play a bigger part in this as owners of Agrograin. Furthermore, our history of operating in this sector across Europe, North Africa and the Middle East will facilitate market access for locally produced commodities such as wheat, corn and sunflower seeds. Agrograin is a strong business with an excellent trading team, who we look forward to working with more closely. I would like to pay tribute to the other shareholders in the company for their work, dedication and insight in building the business. We’re particularly pleased that Andras Vermes has agreed to stay on to manage the transition process,” continues Sanderson.

Source: AgriMarket.Info

5m Editor