Czech food group Hame has purchased the meat-processing unit of Hungarian canned-food company Globus, the Czech newspaper Hospodarske Noviny reported.
The daily said the companies would not reveal the price of the transaction.
Hame already has a Hungarian unit, and the transaction may double or triple Hame group's turnover in Hungary, an official of the consultancy Redbank told the daily.
MTI reported in March that Globus had decided to stop producing and marketing meat-based products as a result of a sharp decline in demand, a continuous deterioration in the company's operating environment and a drastic increase in packaging costs. These meat-based products generated 20% of the company's revenue.
The Globus Group sustained losses of HUF 2 billion (€7.1 million) on revenue of HUF 26.9 billion in 2007. The company released no information regarding its 2008 results.
Hame, with sales of EUR 5 billion last year, is the largest food group in the Czech Republic, maintaining units in Hungary, Russia, Poland, Ukraine, Romania and Slovakia. (MTI – Econews)