Bonafarm’s expansion in Romania under national security investigation – Napolact acquisition may be stalled

Bonafarm – which is linked to OTP Chairman Sándor Csányi – would buy the Romanian subsidiary of Dutch FrieslandCampina, the Napolact dairy brand, and its two plants in Cluj-Napoca and Timisoara. In addition to the investigation by the Romanian competition authority, however, the CEISD, which supervises foreign direct investment, also took the deal to the agenda, on national security grounds.

The CEISD’s decision is particularly noteworthy because the Hungarian Bonafarm group is already present on the Romanian market with the Sole-Mizo brand, so according to the authorities, the acquisition could lead to excessive market concentration in the dairy industry. Local newspapers remind us that the move would not be unprecedented – the Hungarian government previously prevented Alföldi Tej from falling into foreign hands on national security grounds.

FrieslandCampina’s Romanian subsidiary recorded a loss of 29 million lei (2.2 billion forints) in 2024, with sales of 588 million lei (more than 44 billion forints). The deal would have been a logical portfolio cleanup move for the Dutch company, but decision-makers in Bucharest have not yet approved the transaction.

The developments are particularly sensitive, as the OTP Group recently withdrew from Romania after the Romanian central bank vetoed the bank’s local acquisition plans. A similar outcome cannot be ruled out in the case of Bonafarm – which could also rewrite the regional growth strategy of the Hungarian food industry group.