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The business empire of the incoming Czech PM Babis includes everything from chickens to fertility clinics

Andrej Babis, a Czech billionaire, will be appointed prime minister by Petr Pavel on December 9 after his populist ANO won an election in October. Petr Pavel announced that he would name Babis as prime minister after the billionaire cleared up any conflict of interest concerns by agreeing for his Agrofert group to be transferred to an independent trust.

BABIS HOLDINGS

Babis has a net worth of $4.3 billion according to Forbes, making him one of the 10 richest Czechs.

Babis acquired a part of Agrofert in the 1990s, a trading company from communist times.

Separately, he holds investments in the amount of hundreds of millions of Euros through Imoba and a fund named Hartenberg. He has not stated that he will make any changes in his control over these holdings.

GOVERNMENT CONNECTIONS

Babis, as prime minister and member of the EU’s top council for heads of government will decide on national and pan European regulations, taxes, and subsidies.

Babis' companies have received public contracts and investment incentives, such as tax reductions, worth tens and millions of Euros, from the Czechoslovak and Hungarian government.

According to their annual report for 2024, they receive payments from the European Union for land farmed and animals bred.

They also received EU funding for innovative investment project. Some of the projects that Babis was in charge of during his previous term from 2017-2021 are either halted or subject to legal and administration battles.

Babis, when he was previously prime minister, transferred his assets into trust funds that courts and the European Commission later found to be inadequate. He said the new system is more strict, and goes beyond legal requirements.

Agrofert

Agrofert is an association of around 230 businesses in central Europe, including agriculture, food processing and distribution, fertilizers, plastics fuels, forestry, and other industries.

The largest companies are located in Germany, Austria, Hungary, Slovakia and the Czech Republic.

The group had a revenue of 212 billion crowns (10.2 billion dollars) in 2024, and a net attributable income of 7 billion crowns. This was up from 2.1 billion crowns in 2023. One-off profits from the sale the group's chemicals and media business helped to boost the profit.

In 2024, the EU will provide 1.7 billion crowns of subsidies to support farm production.

PLASTICS, ADBLUE, PLASTILISERS

It is an important European manufacturer of the urea-based AdBlue diesel engine additive, as well ammonia and fertilisers.

SKW Stickstoffwerke Piesteritz is one of the major players in this sector. Other companies include GreenChem and Duslo.

Recent acquisitions included the 810 million-euro takeover in 2023 of Austrian energy company Borealis' nitrogen division and the purchase of Rotterdam port terminal OCI Ammonia Holding last month for 290 millions euros.

WHEAT, BREAD MEAT AND EGGS

It is the owner of major poultry and beef processing companies, as well as bakeries and milk processing companies in central Europe. In Czech supermarkets, Agrofert products are everywhere.

It has farms covering more than 140.000 hectares. It is also a major breeder of poultry, pigs and cattle, and it has interests in forestry and wood.

Other Assets

Hartenberg Capital is owned by Jozef J. Janov, a professional investor who is also the leader and minority owner. Hartenberg Capital's investments include:

According to the website of this company, 60 clinics have been operating in 16 European nations and have delivered 166,956 children. This includes hospitals that provide other services.

Enterstore is an e-commerce company that includes brands like Astratex, Miss Mary, and real estate projects.

IMOBA is the owner of several restaurants as well as Capi Hnizdo, a conference and entertainment center near Prague. Babis is facing a court case over a fraudulently claimed 2 million euro EU subsidy for the construction of the project.

Babis returned the money and denies wrongdoing. Babis was acquitted in the case by an appeals court, which ordered a new trial. Babis can avoid this retrial if his allies vote to keep his immunity. $1 = 20.7350 Czech crowns (Reporting and editing by Alex Richardson).

(source: Reuters)