Food magnate and OTP Bank Nyrt CEO Sándor Csányi is to merge all of his holdings in the meat sector into Pick Szeged Rt, Hungary's most famous salami maker, from the start of 2007, creating Hungary's biggest meat company, business daily Világgazdaság reported on Thursday.
Délhús Rt, along with four other smaller companies which have already been emptied, will be merged with Pick Szeged in the transaction, Pick president-CEO László Kovács told the paper. He noted that approval for the merger is not required from the Competition Office, however it is required from the State Privatization and Holding Rt (ÁPV), which holds a golden share in Pick Szeged. The merger is not expected to result in big job cuts, Kovács said.
Csányi's companies currently employ 3,100 people. The merger is expected to boost efficiency and increase revenue. Currently, trade between the companies comes to an annual Ft 10 billion-Ft 20 billion. The companies are expected to close the year with combined revenue of Ft 60 billion, giving them 30% of Hungary's meat market.