Financial Daily from THE HINDU group of publications
Wednesday, May 03, 2006
Financial Daily from THE HINDU group of publications Wednesday, May 03, 2006 |
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Corporate - Mergers & Acquisitions Tata Tea UK arm to buy Czech firm JEMCA Our Bureau
Mumbai , May 2 Tata Tea Ltd has announced that its UK arm would acquire the assets of JEMCA, a tea company in Czech Republic. The UK-based Tata Tea (GB) Ltd has signed a definitive agreement to acquire the assets of JEMCA, from food processing company, Alima Znackova Potravina, Tata Tea said in a statement to the stock exchanges. Tata Tea said the acquisition has been funded by The Tetley Group. It is a 100 per cent acquisition, Mr Percy Siganporia, Managing Director, Tata Tea, said but did not disclose the acquisition cost. According to A.C. Nielsen's November 2005 survey, JEMCA has 26.6 per cent volume share of the tea market in the Czech Republic and turnover of 300 million Czech Koruna (around $12.5 million). Both Tata Tea and Tetley were not present in this geography. JEMCA's product portfolio contains black tea, green tea, herbal and fruit tea. JEMCA will continue to pack teas at its production facility in Jemnice, Czech Republic and continue to trade under the JEMCA brand name, Tata Tea said in an announcement to the stock exchange. Tata Tea and Tetley together have 35 per cent of the global tea market. "So obviously there is room to grow,'' Mr Siganporia said. According to him, Alima had a larger portfolio of frozen foods so they decided to divest from tea business and focus on foods. In terms of market access, this company's brands are largely in Czech. It is a regional player with dedicated customers. Shares of Tata Tea moved up by Rs 28.45 or 3.40 per cent to Rs 865.15 in Tuesday's trade on BSE.
More Stories on : Tea | Mergers & Acquisitions | Tata Tea Ltd
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