Acquisition3 Sep 2014 18:07
With regard to the acquisition of the new Omega Sivec marble quarry at Prilep in Macedonia I read a very astute post by Milogleeson on ADVFN which I will quote here:
I think there is a logic to this purchase which makes good strategic sense.
If you can secure a leading position in particular style of marble with a unique selling point, which there is little direct competition for, people have to come to you to get it.
This provides an entry point to the distributors that the company needs to crack open to get round the existing marble suppliers who have a lot of the market sewn up.
Once you get in with Sivic it will allow you push some of the other products through the same channels.
Still excellent value.
I totally agree and it all starts to make a little more sense now. My initial reaction being, they don't need more marble, they need more sales…. However, now they have practically cornered the market in the prestigious Sivec we can see the prospect of a real breakthrough into the market.