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IKEA mulls joint venture with Bosnia furniture maker
January 8, 2008 / 11:50 AM / 10 years ago

IKEA mulls joint venture with Bosnia furniture maker

SARAJEVO, Jan 8 (Reuters) - Sweden’s IKEA, the world’s largest furniture retailer, is interested in forming a joint venture with Bosnia’s indebted state-owned furniture maker Krivaja, a Bosnian privatisation official said on Tuesday.

Enes Ganic, who heads Bosnia’s Muslim-Croat federation privatisation agency, said IKEA representatives were willing to invest significantly in a new production facility in Krivaja, in the central Bosnian town of Zavidovici.

“The IKEA proposal is very attractive. They are willing to invest into a new plant, improve the existing facilities, keep all employees and secure the market for the products,” Ganic told Reuters by telephone.

He said IKEA, which made its name offering flat-pack design furniture at affordable prices, will send a letter of intent in a week with a detailed description of the plan.

Six international and local bidders applied in December at a tender for the privatisation of eight units of Krivaja but none of them was interested in acquiring the entire company, he said.

“IKEA proposal is much more favourable and we will inform all bidders that privatisation procedure will be temporarily halted until we receive IKEA’s letter of intention,” he said.

Ganic said privatisation officials and Krivaja’s management would then decide whether to call a new tender. “IKEA will not have a preferential status. We will accept the best offer,” he added.

(Reporting by Maja Zuvela, editing by Zoran Radosavljevic)

((maja.zuvela@reuters.com; +387 33 295 484; Reuters Messaging: maja.zuvela.reuters.com@reuters.net.)) Keywords: BOSNIA IKEA/

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