Swiss based multinational commodity producer and marketer Glencore could take over local vegetable oil producer Prutul Galati, according to Romanian business newspaper Ziarul Financiar. No official comment has come from either company, but Ziarul Financiar (ZF) claims that sources “close to the talks” have indicated that negotiations are ongoing.
It is not the vegetable oil production that is of interest to Glencore, according to ZF, but rather the storage facilities Prutul Galati controls in Southern Romania. Prutul Galati has a network of silos and warehouses along the Danube River and in Moldova. A takeover would double Glencore’s storage capacity in Romania to around 1.1 million tons, according to ZF’s calculations.
The local media also estimate a price of around EUR 20 – 22 million for Prutul Galati’s network of silos and warehouses and suggests the value would go even higher if the vegetable oil production unit was included. Both companies declined to comment.
In 2011, Glencore recorded EUR 264 million in turnover in Romania, while local firm Prutul Galati, controlled by Marian Andreev, posted a turnover of EUR 115 million.
Glencore, headquartered in Baar, Switzerland, is a global integrated producer and marketers of commodities. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products.