Olvit Pro deal could be first step to market consolidation

Olvit Pro has reached agreement with ZPT's labor unions paving the way for a take-over of the Warsaw-based margarine and oil producer. The move follows six months of delicate negotiations. The Ministry of Finance, which currently owns ZPT, is expected to make a final decision soon over whether to sell its majority stake in the second largest margarine producer on the domestic market. The final obstacle to completing the deal with Olvit Pro was the quarrel over ZPT employees' social matters. Mlekovita, ZPT's main competitor, tried to capitalize on the situation by submitting a counter-offer promising better conditions for workers. "After difficult negotiations we reached a compromise, thanks to which we finally signed the social agreement," said the head of ZPT's labor union Mariusz Gwistka. It was not revealed how much Olvit Pro would pay for the 70% stake but earlier information suggests it could be around zł.54 million. Analysts consider it a cheap price for the manufacturer of such popular brands as Vita and Bartek. Experts predict, following general international trends, that consolidation of the domestic oil market is inevitable and taking over ZPT will be one of the main factors allowing Olvit Pro to become one of the largest foodstuff producers in this country. (Puls Biznesu, p. 5) D.W.