December 29 (SeeNews) - Romanian cardboard maker Vrancart [BSE:VNC] said on Thursday that the country's anti-trust body approved its takeover of a majority stake in local peer Rom Paper.
The competition council said that Rom Paper's acquisition is in accordance with the effective legislation, Vrancart said in a press release.
You can subscribe to our M&A newsletter here
At the end of July, Vrancart said it will acquire a majority stake in Rom Paper through a two-year sales agreement, for an amount between 4.2 million euro ($4.4 million) and 6.5 million euro ($6.8 million). The final price will be influenced by the financial results achieved by Rom Paper, the company said at the time.
The general manager and founding shareholder of Rom Paper, Claudiu Puchin, will remain in his position.
In 2015, Vrancart posted a net profit of 18.2 million lei ($4.5 million/ 4.07 million euro), up 4% from 2014, on a turnover of 210 million lei, up 6% on the year, data posted on finance ministry's website showed.
Rompaper was founded in 2002 in Cristian, Brasov county, in central Romania. Its main activities are the manufacturing and trade of napkins, hand towels, toilet paper, professional paper towels, dry tissues for salon and SPA, and facial tissues. Its products are sold in seven countries through chain stores and distributors.
Its net profit dropped 6.8% in 2015 to 2.5 million lei, while its turnover was up 18% on the year to 51.5 million lei, according to finance ministry data.
Vrancart was founded in 1977 under the name of Combinatul de Celuloza si Hartie Vrancea in Adjud, in the eastern county of Vrancea. It produces corrugated cardboard and toilet paper.
The majority shareholder of Vrancart is SIF Banat-Crisana [BSE: SIF1], which owns approximately 74.7% of its shares.
Vrancart shares were trading down 0.85% at 0.18 lei by 1401 CET on Thursday on the BVB.
(1 euro= 4.5402 lei)