It’s been five months since the first reports of a buyout proposal for Greek multinational food company Chipita by US giant Mondelez International. Throughout these five months the reports have been refuted by Chipita Chief Executive Spyros Theodoropoulos, while Mondelez has replied to numerous requests saying that it will not comment on market rumors.
The timing of the proposal was not coincidental: It came right after plans for Chipita to be listed were abandoned. The proposal, according to sources, stands at 1.2-1.5 billion euros.
The sale to Mondelez appears to have run up against a reluctant Theodoropoulos, with several observers using this as an explanation for repeated denials of the reported deal. However, the main reason why neither Mondelez nor Chipita have opened up regarding the issue is that the agreement would be complex and could be torpedoed at any point due to the numerous subsidiaries and holdings in consortiums that Chipita has in Greece and abroad.
The widely discussed proposal – regardless of whether there is a deal or not in the end – has undoubtedly placed Chipita among the major attractive companies for investors. If it does bear fruit, it will signify some major restructuring not only in the snacks and sweets market in Greece but also in several other countries, as Chipita has had a significant production and commercial presence abroad since 1996.