Austrian food group Agrana said it has suspended the negotiations for the acquisition of Serbia’s biggest sugar producer Sunoko.
Agrana and the owner of Sunoko, Agri Europe Cyprus, agreed to put the talks on hold due to the challenging European sugar market environment, the Austrian company said in a statement on Wednesday.
In October, the CFO of Agrana, Stephan Buettner, said the company aims to acquire a 51% stake in Sunoko, which holds a market share of about 70% in Serbia.
The Austrian company placed in July 2017 a bid for the acquisition of two sugar factories of Greece’s Hellenic Sugar in Serbia, with a combined market share of 30%, but the sale was called off.
Sunoko has three plants – in Kovacica, Vrbas and Pecinci, all located in Serbia’s northern province of Vojvodina. It is the largest sugar beet purchaser and sugar producer in Southeastern Europe with an annual output of about 300,000 tonnes of sugar.