Spanish agricultural group Grupo Corporativo Fuertes has acquired a 5.06% stake in Russian meat company Cherkizovo Group for approximately US$30m.
Announcing the move, Cherkizovo said that the deal strengthens a strategic partnership that was first launched in 2012 when the groups jointly launched a turkey production complex in the Tambov region of Russia. Cherkizovo said that the facility is poised to become Russia's largest turkey growing facility once it is completed in 2016.
Cherkizovo CEO Sergey Mikhailov commented: "We are honoured that our long-term strategic partner has decided to acquire a substantial stake in our company at the time when western companies have pulled back their investments and are cautious about the future growth of the Russian market."
Tomás Fuertes, president of Grupo Fuertes, added that the Spanish group believes Russia's agricultural sector is "becoming a real driver of the country's economy".
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Fuertes continued: "We also believe that Russia has all the makings of becoming a leader on the export market, and Cherkizovo Group, in our view, will be in the lead. That is why a decision to become a shareholder was an obvious one for us, and the one that will incentivize us to work towards long-term value of all the businesses of Cherkizovo Group."
