Changing Tides in the Fortenova Case: Unlikely Clash between Csányi, Jellinek, Mészáros Over Croatian Agribusiness Giant
In what promises to be a surprising turn of events, it seems unlikely that Hungarian entities owned by Csányi, Jellinek, or Mészáros would lead in the race for Croatia's agricultural giant, Fortenova, especially in an election year.
Competing interests from local consortiums such as Podravka from Koprivnica, Zito, and Osatina from Slavonia stand in strong positions, further complicated by interest from Croatian farmers wanting a stake in the debt-ridden agricultural companies.
Sorting through the Hungarian-related news in Croatian media proves challenging, with reports just a few days ago by Lider suggesting a bidding war involving three Hungarian and one Arab buyer for Fortenova's agricultural entities. However, the scenario is swiftly evolving.
Yesterday's Dnevnik reported two strong domestic contenders, a diminishing number of Hungarian candidates, and the complete withdrawal of Arab interests. Local candidates represent what is termed as "green Croatia," sectors outside tourism, pushed heavily by the Slavonian agricultural lobby. The lobby has been pressuring the Zagreb government for months to involve pension funds in Fortenova, with a strategy to then hand over operations to the farmers. This development is particularly intriguing with parliamentary elections set for April in Croatia. There's speculation that the considerable market presence of Hungarian oil and gas company Mol might also play a role in the pre-election campaign in Croatia.
Fortenova's major ownership lies with Russian entities Sberbank and VTB, holding a combined 50% stake, but EU sanctions currently sideline their involvement. Decisions on the group now rest primarily with Croatian tycoon Pavao Vujnovac, another major shareholder. Conversations around selling Fortenova's agricultural divisions surfaced months ago, with Sándor Csányi initially appearing as a frontrunner. However, recent updates from Dnevnik suggest that Bonafarm, affiliated with Csányi, has not placed a bid, and interest from Indotek seems to have waned. Among the Hungarian contenders previously mentioned by Lider, Lőrinc Mészáros appears most serious, though developments could still shift by the week's end.
Fortenova’s agricultural enterprises, including Belje, Vupik, and PIK Vrbovec, are seen by Croatian experts as strategic food industry companies. They employ over 3,500 workers and work with nearly a thousand sub-contractors across Croatia.
According to an analysis by Nacional, in 2022 Belje achieved a turnover of 235.7 million euros, marking a 9% increase from the previous year, with profits of 14.9 million euros. PIK Vrbovec recorded a 286.5 million euro turnover with a 15% growth, and a profit of 6.5 million euros, employing 1,700 people. Vupik achieved a turnover of 52.5 million euros, with profits standing at 2.7 million euros, employing 350 individuals.
With tourism already overburdened in the Croatian economy even before the pandemic, and records being set following quarantine easing, disparities deepen between the affluent 'blue Croatia' of coastal revenues and the 'green Croatia,' troubled by migration trends. It would be surprising if the agricultural sector in Slavonia and Baranya was neglected in favor of Hungarian bidders during an election year, with strong local candidates like Podravka from Koprivnica and the Slavonian consortium of Zito and Osatina Group in prime contention for Fortenova's agricultural firms.
Sorting through the Hungarian-related news in Croatian media proves challenging, with reports just a few days ago by Lider suggesting a bidding war involving three Hungarian and one Arab buyer for Fortenova's agricultural entities. However, the scenario is swiftly evolving.
Yesterday's Dnevnik reported two strong domestic contenders, a diminishing number of Hungarian candidates, and the complete withdrawal of Arab interests. Local candidates represent what is termed as "green Croatia," sectors outside tourism, pushed heavily by the Slavonian agricultural lobby. The lobby has been pressuring the Zagreb government for months to involve pension funds in Fortenova, with a strategy to then hand over operations to the farmers. This development is particularly intriguing with parliamentary elections set for April in Croatia. There's speculation that the considerable market presence of Hungarian oil and gas company Mol might also play a role in the pre-election campaign in Croatia.
Fortenova's major ownership lies with Russian entities Sberbank and VTB, holding a combined 50% stake, but EU sanctions currently sideline their involvement. Decisions on the group now rest primarily with Croatian tycoon Pavao Vujnovac, another major shareholder. Conversations around selling Fortenova's agricultural divisions surfaced months ago, with Sándor Csányi initially appearing as a frontrunner. However, recent updates from Dnevnik suggest that Bonafarm, affiliated with Csányi, has not placed a bid, and interest from Indotek seems to have waned. Among the Hungarian contenders previously mentioned by Lider, Lőrinc Mészáros appears most serious, though developments could still shift by the week's end.
Fortenova’s agricultural enterprises, including Belje, Vupik, and PIK Vrbovec, are seen by Croatian experts as strategic food industry companies. They employ over 3,500 workers and work with nearly a thousand sub-contractors across Croatia.
According to an analysis by Nacional, in 2022 Belje achieved a turnover of 235.7 million euros, marking a 9% increase from the previous year, with profits of 14.9 million euros. PIK Vrbovec recorded a 286.5 million euro turnover with a 15% growth, and a profit of 6.5 million euros, employing 1,700 people. Vupik achieved a turnover of 52.5 million euros, with profits standing at 2.7 million euros, employing 350 individuals.
With tourism already overburdened in the Croatian economy even before the pandemic, and records being set following quarantine easing, disparities deepen between the affluent 'blue Croatia' of coastal revenues and the 'green Croatia,' troubled by migration trends. It would be surprising if the agricultural sector in Slavonia and Baranya was neglected in favor of Hungarian bidders during an election year, with strong local candidates like Podravka from Koprivnica and the Slavonian consortium of Zito and Osatina Group in prime contention for Fortenova's agricultural firms.
Translation:
Translated by AI
