The Competition Council has Okayed the takeover of Agricost, Braila, Romania’s largest agricultural producer, by the Abu Dhabi-based Al Dahra group, owned by Sheikh Mohammed bin Zayed Al Nahyan. The estimation of the takeover has been estimated by ZF in March this year to over EUR 200 million.
Sources within the Competition Council revealed that Al Dahra had bought the controlling stake in Agricost and has notified the Council in this respect.
The sources said the deal has been made and that there was no reason for not receiving the Competition Council’s go-ahead.
Agricost operates about 56,000 hectares of land in the Big Island of Braila and is also the largest beneficiary of the subsidies granted by the Payments and Intervention Agency for Agriculture (APIA), getting almost EUR 12 million in 2016.
In April, Mohamed Hassan, the development director of Al Dahra told ZF that the group is interested in purchasing 58,000 ha of farmland near the Danube River in Romania, as well as in setting up a logistics company for road and water transport, and also in establishing a factory of food processing to produce tomato sauce.
Al Dahra Holding is a prominent leader in the agribusiness sector, specializing in the cultivation, production and trading of animal feed and essential human food commodities. Al Dahra has made considerable investments in the production, packaging and marketing of grains. The holding’s annual business counts for over USD 1 billion.