CEDC abandons plans to acquire Nemiroff

2010-07-13

The CEDC, one of the world’s largest producers of strong spirits, has abandoned its plans to acquire Nemiroff, a Ukrainian vodka producer. The potential takeover was estimated to be worth $300m. There has been market speculation that the CEDC jettisoned the acquisition because the price of the Ukrainian vodka giant was too high.
The CEDC recently raised PLN 400m (€100m) from the sale of its distribution subdivision in Poland to the Eurocash group. Instead of spending the money raised from the transaction on the purchase of Nemiroff, the CEDC will consider buying either its own shares or the remainder of the stake in Whitehall, the well-known Russian vodka producer, of which it currently owns 80%. At present, the CEDC, which also owns the Russian Alcohol and Parliament distilleries, is the leader on the vodka market in Russia and intends to strengthen its position further.
The main rival of the CEDC in the acquisition of Nemiroff was Stock Spirits, the owner of the popular Polish brand Zoladkowa Gorzka. According to unofficial reports, the latter company is continuing to negotiate on the acquisition of the Ukrainian company.