Thai Union Frozen Products Public Company Limited (TUF) has reached an agreement to acquire leading European smoked-salmon producer MerAlliance in an attempt to strengthen its world leadership position in seafood.

TUF says the purchase of MerAlliance - which will be carried out through its subsidiary MW Brands - will have a positive effect on their short-term and long-term earnings, with an estimated 5-6% increase in TUF's group revenues.

TUF president and chief executive officer Thiraphong Chansiri stressed that their focus continues being on strengthening their competitiveness within six strategic business categories which are tuna; shrimp and shrimp-related; sardine and mackerel; pet food; value-added products; and salmon, which is among the highest growth potential categories for the group.

TUF's agreement to acquire 100% of MerAlliance is subject to customary closing conditions and the transaction is expected to be completed in the fourth quarter this year.

MerAlliance a French-based company that generated US$220 million in sales in the fiscal year ended 31 March 2014. It has a strong sales presence in France and in the United Kingdom, and has production facilities in France, Scotland and Poland.