There are rumors that Cherkizovo, Russia's largest meat producer, is up for sale. However, the rumors are not confirmed by the producer. GlobalMeatNews reported this on Thursday, December 21.
Several Russian newspapers show that both Russian and foreign buyers would be interested in the meat producer† However, the various companies mentioned do not want to confirm this.
The proceeds of Cherkizovo increased 2017% between January and June 12 to reach $736 million. Net income rose to $86,9 million.
Two candidates
One of the candidates mentioned is the Thai CP Foods. This company already has several poultry farms in Russia and paid $2015 million in 680 for the Severnaya and Voiskovitsy poultry farms. According to a company spokesperson, CP Foods is interested in building a "vertical integration structure, including through mergers and acquisitions."
Another candidate is the Russian rusagro group. CEO Maxim Basov previously said that poultry farming (a large part of Cherzikovo's business) could be a new direction for his company. Several analysts from the Russian Ministry of Agriculture believe that the acquisition of Rusagro will allow the company to diversify its portfolio and start exporting poultry meat to the Middle East.
No price tag yet
There is no price tag attached to the agreement yet. However, sources report in Russian newspapers that the bids could exceed $2 billion. This high amount can be explained by an annual growth of 12% to 13%.
However, the value of the meat producer can be depressed by the high debts. As of September 30, the company has net debt of approximately $804 million.
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