Smithfield may acquire Pini Polonia from Brussels

The European Commission (EC) has approved the acquisition of Pini Polonia by the American meat group Smithfield Foods. The takeover is not yet completely final, as the Polish Competition Authority (UOKiK) has yet to consider the deal.

Pini Polonia is the Polish branch of the Italian meat company pini. In Poland, Pini Polonia has a market share of about 30%, which equates to approximately 80.000 pig slaughters per week. This makes them one of the market leaders. Smithfield is already active in Poland and is seen as the other market leader. In April last year, Smithfield announced the acquisition of Pini Polonia, but authorities had yet to finalize the deal.

Influencing the Polish pig market
More than 8 months later, the EC concludes that the deal only concerns the pig sector in Poland. According to Brussels, it is now up to the Polish authorities to determine whether Smithfield Foods will gain too much market power in Poland if Pini Polonia is incorporated.

Smithfield Foods, the world's largest meat group, was acquired by the Chinese WH Group in 2013 and is active in countries including the United States, Mexico, Germany, Poland, Romania and the United Kingdom. In 2016, sales were $14 billion.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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