MHP’s strategic move into Spain: UVESA acquisition marks key expansion in European poultry market

MHP SE, a publicly listed food and agriculture company, has taken a decisive step in strengthening its presence in the European poultry sector with the signing of a Share Purchase Agreement (SPA) to acquire a 41% stake in Spain’s leading poultry producer, UVESA Group. Announced on March 20, 2025, this agreement represents a significant milestone in MHP’s broader European expansion strategy, reinforcing its long-term ambitions in the Spanish market.

The acquisition deal underscores MHP’s strategic intent to expand beyond its stronghold in Ukraine and Eastern Europe, integrating itself further into Western European markets. With Spain being one of Europe’s largest poultry producers, the acquisition of UVESA allows MHP to leverage established local operations while bringing its expertise in high-efficiency production, sustainability, and innovation to the region.

Under the terms of the agreement, MHP will purchase UVESA shares at a fixed price of €225 per share, with an additional contingent consideration of up to €21.43 per share, subject to post-closing conditions. The SPA further includes a provision enabling other UVESA shareholders to opt into the agreement within a month, granting them an opportunity to sell their shares under the same terms.

What Does This Acquisition Mean for MHP’s European Growth?

For MHP, this investment marks more than just a stake in a leading Spanish poultry producer—it signifies an expansion of its operational and market footprint within the European poultry sector. Over the years, MHP has built a reputation as one of Eastern Europe’s most vertically integrated poultry producers, overseeing operations from grain production to poultry farming, processing, and food distribution. The move into Spain strengthens its ability to diversify both its production capabilities and customer base in one of Europe’s most competitive meat markets.

John Rich, Executive Chairman of MHP’s Board of Directors, emphasized the significance of this acquisition in advancing the company’s strategic goals. He stated that MHP’s European expansion is not only about growing market share but also about forging long-term partnerships that foster innovation and sustainability. Rich underscored UVESA’s solid reputation in Spain, highlighting its deep market roots and operational capabilities, which make it an ideal partner for MHP’s vision of sustainable growth. He further assured that UVESA’s workforce—comprising more than 3,000 employees—would remain central to the company’s operations, with a continued commitment to job stability and economic development in the region.

Why Is UVESA a Strategic Fit for MHP?

UVESA Group has been a cornerstone of Spain’s poultry industry for over six decades, specializing in vertically integrated poultry production. The company operates across multiple segments, including broiler farming, feed production, and pork processing. Its poultry operations include advanced processing plants equipped with automated systems that adhere to stringent quality and food safety standards, earning it multiple international certifications.

In addition to poultry, UVESA maintains a strong presence in Spain’s pork sector, supplying some of the country’s top meat companies. The company also runs state-of-the-art feed manufacturing facilities designed to ensure optimal nutrition for livestock. This vertically integrated approach aligns with MHP’s own business model, allowing for operational synergies that can drive efficiency, cost savings, and enhanced production capacity.

Antonio Sánchez, President of UVESA, described the agreement as a transformative step for the company, one that aligns with its long-term growth objectives. He noted that MHP’s extensive expertise in poultry innovation and large-scale operations would provide UVESA with new opportunities to expand its market reach while maintaining its commitment to high-quality products and local Spanish consumers.

What Are the Regulatory Hurdles for This Transaction?

Despite the strategic alignment between the two companies, the deal remains subject to regulatory approval before it can be finalized. The transaction requires merger control clearances and foreign subsidies clearance from the European Commission, ensuring compliance with EU competition laws and investment regulations.

A significant milestone in the approval process was reached on March 4, 2025, when MHP secured formal authorization from the Spanish government for its investment in UVESA. This approval strengthens MHP’s position as a responsible foreign investor, reinforcing its commitment to regulatory compliance and sustainable economic contributions to Spain’s agri-food sector.

How Will This Deal Affect the Broader European Poultry Market?

MHP’s acquisition of a major stake in UVESA comes at a time when Europe’s poultry sector is facing a dynamic shift. The industry has been grappling with fluctuating production costs, regulatory pressures on antibiotic use, and shifting consumer preferences toward sustainable and ethically produced meat. MHP’s established expertise in high-efficiency production and advanced farming technologies positions it as a key player capable of addressing these industry challenges.

Spain, as one of the EU’s largest poultry producers, presents significant opportunities for MHP to scale operations and integrate its vertically managed supply chain with UVESA’s established distribution networks. This move is expected to create competitive advantages in pricing, production efficiency, and market responsiveness, enabling the combined entity to meet growing consumer demand both within Spain and across Europe.

Beyond immediate operational synergies, the acquisition is expected to enhance MHP’s ability to export Spanish-produced poultry products to international markets, including the Middle East, where MHP already has a strong presence. This international expansion strategy aligns with broader trends in the poultry industry, where producers are seeking to diversify revenue streams amid shifting geopolitical and economic landscapes.

What Does This Mean for MHP’s Stock Performance and Investor Sentiment?

From an investor standpoint, MHP’s continued expansion into Western Europe signals confidence in its long-term growth strategy. As a company listed on the London Stock Exchange, MHP’s stock performance is closely watched by global investors assessing its expansion plans, market positioning, and financial stability.

Recent stock movements indicate stable performance, with MHP trading at approximately $6.10 per share as of the latest market data. Analysts suggest that this acquisition could bolster MHP’s market value by reinforcing its presence in a high-demand European market while diversifying its risk exposure beyond Eastern Europe. Investor sentiment has been largely positive, with market watchers predicting that the acquisition could strengthen MHP’s competitive position against other leading poultry producers operating in the EU.

How Does This Acquisition Shape MHP’s Future Strategy?

MHP’s investment in UVESA is part of a broader trend of Eastern European agricultural companies expanding westward to tap into larger and more mature markets. By securing a stake in Spain’s poultry industry, MHP not only gains immediate access to a significant market but also builds the foundation for future expansions within the EU.

The deal reflects a strategic pivot in MHP’s growth model, one that prioritizes direct investments in established European brands as a means to accelerate market penetration. As MHP continues to explore further international expansion, its approach to integrating regional expertise with its own technological and operational strengths will be critical in sustaining long-term growth.

The transaction also comes at a crucial time for the global poultry industry, where companies are navigating evolving regulatory frameworks, consumer expectations, and supply chain constraints. MHP’s acquisition of UVESA positions it to adapt to these challenges while solidifying its role as a leader in European poultry production.