Alexa
  • Directory of Taiwan

Finland's Atria joins bidding war for Swedish Meats

Finland's Atria joins bidding war for Swedish Meats

Finnish food-processing company Atria Oy said Tuesday it has made a 1.3 billion kronor (euro144 million, US$189 million) bid for Swedish Meats in a move to create a market leader in processed meat in Sweden.
The offer comes two weeks after its Finnish rival HK Ruokatalo Group Oyj made a euro113 million (US$145 million) bid for Swedish Meats. Atria said its offer would give the Swedish company continued ownership and control of its slaughtering and cutting operations.
However, Swedish Meats rejected the bid, saying it still intends to merge with HK Ruokatalo.
"Swedish Meats entered an agreement with HK Ruokatalo on Nov. 10, concerning a future partnership," the company said in a statement. "Swedish Meats does not intend to violate that agreement."
Atria said it wants to buy the processed meats operations and combine it with its own Swedish division, which would result in a company with an estimated annual sales of around 5.5 billion kronor (euro608 million; US$798 million).
Swedish Meats is one of Sweden's largest food producers, and is jointly owned by more than 22,000 Swedish farmers. Atria is listed on the Helsinki stock exchange and recorded total sales of around euro980 million (US$1.29 billion) in 2005.
Matti Tikkakoski, Atria's chief executive, said the rival bid "provides with an attractive overall financial and strategic outcome both short- and long-term for Swedish Meats' owners and Atria."
Atria has around 5,000 employees, with operations in Finland, Sweden and the Baltic countries.