Lyon-based fresh pasta producer Panzani said it has completed the acquisition of the dry pasta and rice division of French counterpart Lustucru from owners, Skalli.

These activities generate a turnover of €200m (US$195m).

The sale of Lustucru's dry pasta activities was not part of the deal, Skalli having announced plans to set up a new company in this segment, Pasta Corp.

Lustucru has a 37% share of France's fresh pasta market compared to only 2% until now for Panzani, a Panzani spokesman said. "We already have a 34% share of France's dry pasta market and will now enjoy a strong posiiton in fresh pasta along with rice and sauces," the spokesman added.

Panzani will double as a result of the deal to around €500m.

By Stuart Todd, correspondent