Velkom long planned to diversify business, resulting in purchase of Valio's Russian business

MOSCOW. May 4 (Interfax) - Velkom Group, one of the largest producers of meat products, has long been planning to diversify its business and as a result has purchased the Russian subdivision of Finish dairy concern Valio, the press service for Velkom Group told Interfax.

"We have been planning to diversify our business on the food products market for the last few years and have considered various options, including acquiring existing players. It was principally important to us that the asset acquired distinguished itself with a high level of product quality and business excellence. Acquisition of the Russian subdivision of Finnish concern Valio was an optimal solution to this task," the press service said.

Valio finalized talks on selling its business in Russia to food products producer Velkom at the end of April. The parties agreed not to disclose the value or the terms of the deal. A factory producing processed cheese and semi-hard cheese in Ershovo in the Moscow region and the rights to the Viola brand of processed cheeses are included in the deal.

Viola brand products will continue to be sold on the Russian market, the press service said. The products produced as part of the lines of other brands will not change. Velkom also has the right to produce and sell products under brands not included in the deal during a transition period that could last until the end of the year.

Decisions on whether to expand or change the Viola product line will be made by the team that has worked in Valio's Russian subdivision.

Following changes in the structure of ownership, all employees of Valio's Russian subdivision will continue to work at Velkom Group.

Valio has worked in Russia for more than 100 years, but under the current circumstances considers it impossible to continue its activities, the company said in a statement published in March.