The purchase of French Doux by MHP may bring both risks and possible growth opportunities

The potential purchase of the agri-industrial holding Myronivsky Hliboproduct (MHP) the French company Doux Group may bring both risks and growth opportunities.

According to the investment analyst at Concorde Capital Andrew Perederey, this will help the company to boost exports to EU coutnries from its Ukraine-based capacities. 

"The key questions now are whether the Doux acquisition can be indeed value-creative for MHP, and whether the Ukrainian holding will be able to turn around the French firm," he notes. 

French media previously reported that MHP filed with the Interministerial Committee for Industrial Restructuring (Comité interministériel de restructuration industrielle) documents for the recovery of the Doux Group, which is currently in bankruptcy proceedings.

Chairman of MHP Yuri Kosyuk in a comment for AgroPolit.com confirmed that the company is considering the option of buying Doux, but before the final decision is still to be made. According to preliminary estimates, the amount of funds needed for the "reanimation" of the French manufacturer is EUR 220 million.

Andrew Perederey informed that the potential acquisition of Doux will help MHP to boost its presence in MENA countries. Such actions are also in line with MHP’s strategy to increase poultry export volumes.