The owner of the MK Group, Miodrag Kostic, said he would most like to merge with the biggest manufacturer in the US, but the other side declined, so he "must choose" Croatia's Podravka food company.
Podravka CEO Zvonimir Mrsic was not interested in mergers but cooperation in stepping out on third markets. He said Podravka was seeking a partner for this in the Rovinj Tobacco Company, which recently opened a plant in Iran.
"Better relations between Croatian and Serbian entrepreneurs are the best way to improve relations between the two states," Kostic said, adding, "Our function is not employment but generating profit and opening new markets, after which jobs will come naturally".
Mrsic said Podravka had cut workers by 20 per cent in Croatia, which enabled it to considerably increase efficiency and keep debts low. He said the company was about to launch an investment cycle expected to enable it to keep its standing in the region and conquer faraway markets.
This region can look up to the Benelux as a system of economic policy coordination, but given that Croatia is now a European Union member, this means that it should help its neighbours join the EU as soon as possible so that they can get coordinated and help each other, said Vedrana Jelusic Kasic of the European Bank for Reconstruction and Development's Croatian office.
Economic analyst Damir Novotny said a better example was the Baltic region, which had managed to connect economically around high added value products. "We can no longer fight against the cheap production from Vietnam or Bangladesh."
Mrsic said Podravka was interested in acquisitions in the food and drugs industry, for which it could take a loan. He said the shareholders agreed, including the state, which is not against reducing its stake through recapitalisation.
Novotny said a greater business volume was important for investments in innovations, with which Kostic agreed. His company has EUR 120 million cash on EUR 700 million revenue but cannot find a company in the region to buy that would guarantee a 15 per cent return on investment.