Blocked Hellenic Dairies says it had planned big investments in Hungarian dairy firm

Greece’s Hellenic Dairies said it had planned important investments to upgrade the loss-making Hungarian institution it had agreed to take implicit earlier Hungary banned the acquisition and halted its Eastern European enlargement drive.

Prime Minister Viktor Orban’s authorities said connected Tuesday it had banned the overseas takeover of dairy institution Alfoldi Tej Kft by a suitor, identified aboriginal by a authorities authoritative arsenic Hellenic Dairies.

Orban’s cabinet, which has been stepping up its absorption to overseas takeovers of cardinal companies, said a overseas takeover would mean earthy beverage would beryllium exported from Hungary and dairy products produced overseas would person to beryllium purchased astatine higher prices than before.

Hellenic Dairies told Reuters precocious connected Thursday that it had planned to support and grow the Hungarian company’s home activity, which Budapest says accounts for astir a 5th of earthy beverage purchases successful Hungary.

“Our main goals were to support and make the company’s home activity, enrich its portfolio with caller products, support and make beverage producers and renew and grow the facilities with important investments successful buildings and equipment,” the institution said successful an emailed response.

There was nary denotation of the terms from either side.

Hellenic Dairies said its connection to get Alfoldi Tej Kft was accepted by the company’s shareholders earlier the transaction fell done amid a overseas nonstop concern screening procedure.

“We should enactment that successful the support record there was a elaborate concern program that described our plans for the adjacent day,” the institution added without giving much details connected the crushed for the rejection.

Hellenic Dairies has expanded successful Romania, Bulgaria and Cyprus done buyouts successful caller years. Alfoldi Tej Kft employs much than 700 radical and processes astir 270 cardinal litres of beverage per year, based connected accusation published connected its website.

It has been loss-making since 2021, institution records show.

Headquartered successful Trikala, Hellenic Dairies’ cardinal brands see Olympos, Tyras, Rodopi and Dodoni. [Reuters]