Kruszwica: UOKiK approves merger

2006-03-06

Zaklady Tluszczowe Kruszwica, a listed fat producer,obtained approval from the Office of Competition and Consumer Protection (UOKiK) for a merger with Olvit-Pro, Ewico and ZPT Olvit, fat makers partly owned by private businessman Jerzy Starak. The Office decided that the consolidation would not have a negative impact on competition. The petition on this issue was submitted to UOKiK in May 2005.
The aim of the consolidation, as ZT Kruszwica vice-president Tommy Jensen was quoted in Parkiet, is the creation of a single entity which will benefit from extended brand portfolio, larger production capacity and economies of scale. The concentration will occur as all the assets of Ewico, ZPT Olvit and Olvit-Pro are moved to Kruszwica in lieu of its shares. All the transaction details are to be specified during negotiations between the companies. Kruszwica is confident that the entire consolidation process will take less than a year. The merged producers will operate as a single company – Zaklady Tluszczowe Kruszwica – listed on the Warsaw Stock Exchange (GPW). When the process has been concluded, the company will own four production units including one controlled by a dependent firm.
Post-merger, Kruszwica will become the largest Polish producer of vegetal fat. Consolidated revenues of the four companies came to over PLN 1.5bn (€0.4bn) in 2005.