September 12, 2007

Three-way merger creates second largest pork company in France

Three French firms, Louis Gad, co-operative CECAB and Prestor, are merging their pork processing operations to form one of the top companies in country's pork industry. 

If approved by regulatory authorities, the merger would form the second largest pork company in the French market, behind Cooperl.

The new group, which has yet to be named, plans to invest more than US$41.5 million over the next five years improving its production sites.

The new company would be a pig integrator with nearly US$1 billion in annual turnover, producing 368,000 tonnes of meat a year.

The company's pork operations would be supported by 680 farms supplying 2.2 million pigs a year to the company.

Prestor president Guillaume Rou¨¦ said the merger gives the companies the clout to compete at the European level. The merger would also serve to bring more consolidation to the fragmented French pork industry, he added.