"Hungary’s competition authority (GVH) has approved Bonafarm Zrt., an interest of OTP Bank Chairman-CEO Sándor Csányi, to acquire 100% of salami maker Herz Szalámigyár Zrt., and all of its movable and immovable property. Herz has been under liquidation.Bonafarm and Herz agreed on the takeover on 1 December 2009.
By the competition watchdog's decision Hungary’s two most well-known salami brands, Pick and Herz, are now held by the same owner once again after a very long time.
Bonafarm, which is majority-owned by Bonitás 2002 Zrt., an interest of OTP chief Sándor Csányi, was established in 2009 with the purpose of joining Csányi’s food businesses under Singapore-based CSIM Pte. Ltd., which was set up at the end of 2008, Bonitás holding 77% of it.
Bonafarm group includes meat processors, animal fodder makers; warehousing activities and hog, cattle and poultry breeders.
The history of Herz salami maker goes back to 1888. It was founded by Ármin Herz, with salami as the plant’s main product. Following its privatization in 1994, the company was obtained by Herz Szalámigyár Rt. And Pick Rt. It was detached in 2004 when Pick was reorganized. It has been operating independently until it became insolvent in January 2009. Its main export markets were Germany, Austria and the Czech Republic. One of its flagship products was the traditional "téliszalámi" (winter salami). Production in the plant has been shut down since 2008/2009.
The GVH found that the merger will not reduce competition on the relevant market especially by creating or increasing dominant market power."
Source: Portfolio Online Financial Journal
09.03.2010