Ursus, the third-largest brewer in Romania, is currently in talks for taking over the most wanted regional brewery, Bere Timisoareana, still held by Romanian shareholders, sources within the company told Ziarul Financiar.
Ursus, held by SAB (South African Breweries), one of the leading brewer groups in CEE, is trying to regain part of the beer market share it lost to other producers, Brau Union and Interbrew.
Ursus, which now has 10% of the market, might reach 14% following the acquisition of Timisoreana, therefore outstripping Belgium-based Interbrew Group (12%), which would fall to the third place. Under the circumstances, Brau Union will still remain the leading brewer, due to its 36% market share.
"Ursus officials have been in Timisoara this month, carefully studying the factory. The have had access to accounting records and recorded several tapes inside the factory. The contract has been signed or is about to soon," the quoted source said.
Timisoreana managers, which also hold the controlling interests in the brewery, were not available for comment as they were out of the country. Also abroad is Steve Woodward, chairman of Ursus Board.
"I can't either deny or verify this information. No comment," was the answer of Philip Norley, vice-president and marketing manager of Ursus.
Market analysts estimate that Timisoareana is worth some $12-15 million, considering its 4.5% market share and the extremely loyal consumers in the area.
The visit of Ursus officials to Bere Timisoareana, the largest regional brewer, is the last one in a long list of such visits from the leading European producers, such as Heineken or Brau Union, which have also been there
"Of all those groups to have had talks in Timisoara, Ursus is the closest to signing an acquisition contract, in the event it has not already happened. All the brewers know Timisoreana is up for sale, anyway," the manager of an international brewer operating on the Romanian market told Ziarul Financiar.
Bere Timisoreana, privatised by MEBO, has come to be controlled by its current managers after they bought the stock from the employees. Most of the transactions were concluded at 4.8 DM/share, according to a company source.
Timisoareana is listed on RASDAQ and has 16.42bn lei in share capital. The face value per share is of 25,000 lei. Timisoreana shares were last traded in 1999.
The beer market in Romania is estimated at $500 million per year, with 5% growth forecast this year.
This sector is deemed as one of the most competitive in Romania, since the competition here is at its fiercest. The beer prices have had one of the lowest increase paces, with significant declines registered in real terms.
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