Podravka signed an agreement with the Fortenova Group on Friday to acquire the agricultural segment of Fortenova, consisting of Belje, PIK Vinkovci, Vupik, Energija Gradec, Belje-Agro Vet and Felix, the Koprivnica-based company announced in a press release. The transaction was valued at 333 million euros.

Podravka announced that it will finance this acquisition with loans from commercial banks and added that it expects the European Bank for Reconstruction and Development (EBRD) to be a partner in this transaction.

As agricultural production will become the new pillar of the Podravka Group alongside the food and pharmaceutical industries, Podravka has established a new company, Podravka Agri, which will manage the newly acquired companies, which will continue to operate as independent companies.

EBRD is expected to control a minority stake in Podravka Agri, while Podravka itself will hold more than 80%.

A successful completion of this acquisition would strengthen the Podravka Group’s position as one of the most important and largest Croatian companies, which generates the majority of its revenues on foreign markets, according to the press release.

The completion of the transaction is subject to the approval of the Croatian Competition Agency and the regulatory authorities in the markets of South-East Europe, it added.