MHP suspends Croatia project, moves ahead with Spain poultry investment
Ukrainian poultry company halts expansion in Sisak after due diligence; confirms minority stake deal in Spanish firm Uvesa
UKRAINE – Ukraine-based agri-food business MHP has halted a planned investment project in Croatia after completing a detailed due diligence process.
The project, which had been under consideration since early 2023, was aimed at establishing operations in the city of Sisak.
MHP said its initial assessment of the opportunity revealed outcomes that did not match the mutual expectations of the company and its partners.
In a statement, the London-listed firm announced it will instead focus resources on expanding Perutnina Ptuj, a poultry company it acquired between 2018 and 2019.
Perutnina Ptuj, headquartered in Slovenia, produces poultry meat and a range of processed products and is seen as a key part of MHP’s regional strategy.
MHP had planned to set up the Croatian facility to support domestic food production, improve national food supply resilience, and contribute to local economic growth.
According to the company, it had conducted a comprehensive feasibility assessment and environmental impact study as part of its preparation for the project.
It said the goal was to apply its industry expertise and operational experience to deliver a successful outcome in Croatia.
However, MHP has now confirmed that the initiative has been placed on hold and provided no timeline for a potential re-evaluation.
The development comes shortly after MHP reached a deal to acquire a 41% minority stake in Spain’s Uvesa, a poultry processor based in Navarra.
MHP had been in competition with Spanish group Grupo Fuertes since December to secure shares in Uvesa.
The company confirmed that it signed a share purchase agreement for the stake, describing the transaction as a move to increase its activity in Spain.
The agreed price per share is US$243.7, with a possible additional payment of up to US$23.2 per share depending on certain post-closing conditions.
Under the agreement, other Uvesa shareholders are allowed to participate in the sale under the same terms within a month.
MHP said the full payment for the shares will be made in cash once the deal is finalized.
The transaction still requires regulatory clearance, including approvals related to competition and foreign subsidies from the European Commission.
Board chairman John Rich said that Uvesa’s presence in the Spanish market fits with MHP’s broader expansion plans in Europe.
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