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Spanish business buys $27m stake in Russia's Cherkizovo

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Oscar Rousseau

By Oscar Rousseau+

Last updated on 25-Jul-2017 at 13:19 GMT2017-07-25T13:19:29Z

Cherkizovo claims to be one of the largest multi-species meat processors in Russia
Cherkizovo claims to be one of the largest multi-species meat processors in Russia

Spain’s Grupo Fuertes has increased its stake in Cherkizovo to 8% after the Russian company’s biggest shareholder, MB Capital Europe, put 1.8 million shares up for sale.

Grupo Fuertes has paid around $27m for an extra 3% stake in Cherkizovo, bringing the Spanish company’s total investment in the Russian pork and poultry producer to $77m.

It is unclear why MB Capital Europe, Cherkizovo’s majority shareholder, decided to sell around 1.8m shares that were individually valued at $14.60 each. But the business has now decreased its share by 2.89%, although it still retains the largest stake in Cherkizovo, which claims to be one of the biggest meat processors in Russia.

Cherkizovo and Grupo Fuertes are well-acquainted business partners. They entered into a joint venture in 2012 to run a turkey plant in Tambov. The factory hit full capacity earlier this year and produces around a fifth of the turkey meat on the Russian market, although the two companies want to supply half the turkey on the market.

Grupo Fuertes had a stake in Cherkizovo that was approximately 5% before it bought over 1.9m shares in the London Stock Exchange-listed business this week.

Grupo Fuertes claims to be one of Spain’s largest agricultural holdings and manages around 20 agri-food companies, covering aspects of the food chain including meat and poultry, seafood, dairy, bottled water, crops and wine.

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