The company was last year removed from the list of enterprises of particular interest, but now that might change once more.
Minister of State Property Goran Marić has confirmed that he will submit a proposal to the government to return Podravka to the list of companies of particular interest. The company was removed from the list mid-last year, after which speculations began on possible preparations for the sale of the state-owned shares in the company, reports Večernji List on August 26, 2017.
Marić was against that decision at the time as a member of Parliament, and now as a minister, he can submit a proposal to change the decision. Still, the final decision to return Podravka to the list has to be passed by the whole government, and some ministers reportedly are not ready to support Marić’s proposal.
When it comes to disagreements, they are primarily between those in the government who want to privatise state-owned companies and those who do not, since the inclusion on the list prevents privatisation.
“Although Podravka is currently not on the list of strategically important and special companies, it is a prominent company that is extremely important for the development of not only the Podravina region but also of the overall Croatian agricultural potential. I would not want Podravka to become a means for someone to improve their cash flow,” said Minister Marić at the beginning of this year. Marić was also very active in insisting on changes in the company’s management, and the current CEO Marin Pucar was his choice.
Opinions differ on whether Podravka should be a company of particular interest or not. Many say that it does not make sense to include it in this category since it is a food company which imports a great deal of raw materials from abroad. But, there is another argument that sees Podravka as the foundation for the strengthening of the agricultural sector in the whole country, because the company is a significant buyer of fruit and vegetables from farmers.
The state owns a substantial share, and it is believed that it is easier to protect agricultural interests this way than to bring an outside investor. And, if Podravka remains not included in the list, then there is a possibility that the decision to sell the state’s 25 percent share could be more readily adopted and implemented.
Last year, the government removed several companies from the list – Podravka, ACI yacht chain, Končar - Elektroindustrija, Petrokemija, Croatia Airlines, Port of Rijeka, Croatia Bank and Croatia Osiguranje insurance company. Still, no companies have been sold in the meantime.
Translated from Večernji List.
