By sending invitations to the addresses of several potential buyers, the Fortenova Group has initiated the process of exploring interest for the potential sale of its agriculture business sector.

"Fortenova expects non-binding offers by the end of the first quarter. The continuation of the process will be focused on those who, in addition to paying a fair price, are willing to make a maximum contribution to the further development and preservation of employment and the tradition of agricultural production in Croatia," said Fortenova.

Koprivnica-based Podravka has long been mentioned as the most likely buyer for companies such as Belje, Pik Vinkovci, and Vupik Vukovar. However, it's not just Podravka; a Hungarian tycoon close to Viktor Orban, who has already acquired the company Rabo from Kneževi Vinogradi, the largest domestic apple producer, is reportedly highly interested in the acquisition. Rabo has become part of the large Meszaros conglomerate, led by Lorinc Meszaros, the main sponsor and benefactor of NK Osijek, as well as a favorite entrepreneur of Viktor Orban. According to our information, the Hungarian tycoon is actively lobbying for this deal.

Allegedly, Arab investors represented by Saif Alketbi, a man who has been in a legal battle for months to acquire the entire Fortenova, claiming to have bought a majority stake from the Russian Sberbank, also want to take over Fortenova's agricultural business.

Furthermore, Miroslav Mišković, the owner of the powerful Serbian Delta Holding, and Marko Pipunić, the owner of Žito from Osijek, are also interested. Fortenova has reportedly sent informational forms with financial figures of agricultural companies to Žito, along with a request to submit a non-binding offer. The final decision will be in the hands of the new owner of Fortenova, Pavao Vujnovac, but also in the hands of Prime Minister Andrej Plenković, as these companies control a significant amount of state-owned land in Slavonia and Baranja. The decision to continue negotiations with the most serious bidders will come in the midst of the pre-election campaign for the parliamentary elections scheduled for spring.

Given that the acquisition of Belje, Pik, and Vupik is primarily a political decision for the Croatian government, and only then a business decision, it is easy to assume that Hungarian, Arab, and Serbian investors may not have much chance. The question is whether they were even invited to participate. In that case, only Podravka and perhaps Pipunić remain as potential buyers.

Unofficial estimates suggest that Fortenova's agriculture sector could be worth around 400 million euros, with Belje accounting for around 300 million. The total revenues of Belje, Pik, and Vupik were approximately 340 million euros two years ago, with a total net profit of 20 million euros. The three companies employed around 2,300 workers.

Belje achieved revenues of 236 million euros and a profit of 15 million euros, a staggering 380% increase from the previous year. Belje employs around 1,600 people. Industrial production at Belje (sausages, bacon, cheese, ABC cheese spreads) generated sales of around 52 million euros with a growth of 26%.

In crop farming, sales were close to 70 million euros (8.5% more), and in livestock farming, it reached 80 million euros (27% more). However, business numbers reveal that the revenue growth was due to higher prices, not sales volume. In the previous year, Belje sold 150,300 tons of cereals and oilseeds, which is 22% less than in 2021. Vegetable sales decreased by 20%, with 2,600 tons sold. In the same year, Belje sold 311,780 pigs, which is 4% less, and 16,200 cattle, a decrease of 10.5%.

In 2022, Vupik achieved revenues of about 53 million euros with a profit of 2.8 million euros and has around 350 employees. Vinkovački Pik had a turnover of 49 million euros with a profit of 2.6 million euros. All this was achieved with 360 employees.

The portfolio of Vinkovački Pik is dominated by cereals and oilseeds, and they are also engaged in the cultivation of peas, beans, sweet corn, onions, and other vegetables. Vupik is also known for the production of cereals and oilseeds, as well as carrots, onions, and peas.

By acquiring these companies, the Podravka Group would once again strongly focus on agriculture, which it abandoned in the late 1990s when, on the advice of foreign consultants, it divested its agricultural business, deeming it non-strategic. Podravka would, therefore, return to its roots.

One more thing: by acquiring Belje, Pik, and Vupik, the Podravka Group would finally have more than a billion euros in total revenues. Last year, it reached over a billion euros in market capitalization, or the value on the stock exchange.