Romanian Competition Council OKs Raraul Takeover By Albalact

"The effects of the economic concentration operation upon the competition environment are not significant, and the operation has not led to the growth or consolidation of a dominant position on the identified relevant markets," the council said Monday in a press release.

The economic concentration takes place in the milk and dairy products production and trading, with the national markets being the most relevant.

Raraul, specialized in the production of cheese and dairy products, was privatized in 1994.

In 2007, the company reported a turnover of 16.18 million lei (EUR1=RON4.2684), around 40% lower than in the previous year, while its net profit dropped by 30% to RON440,000.

Albalact is one of the most important dairy producers in Romania, with over 60-product portfolio.

It said it will pay RON13.42 million for 77.2% of Raraul’s shares to be bought from 88 stockholders.

Albalact has a share capital of RON65.2 million and is listed on Rasdaq market of the Bucharest Stock Exchange.

The company’s main shareholders are businessman Petru Ciurtin, with a 31.74% stake, investment fund RC2, with a 17.2% stake and Petru-Raul Ciurtin, holding a 14.2% stake.

On the Bucharest Stock Exchange Monday, Albalact shares were traded at around 1203 GMT flat on the day at RON0.21.