French dairy firms Entremont Alliance and Sodiaal have made official their exclusive negotiations on a possible merger with the signing of a formal agreement by the two parties.
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Talks between the two sides started last month but the agreement, announced yesterday (30 September), is valid for one month and renewable for a further month, if required.
Agriculture minister Bruno Le Maire said he expected the outcome of the negotiations to lead to the creation of Europe’s fourth-largest dairy group and emphasised “the support of the government” in defending the “balanced French model between private industry and co-operative” in the sector.
However, an Entremont spokesman told just-food a merger with Sodiaal was not yet a done deal, with a number of issues still to resolve.
“We are caught between the impact of the slump in global prices for powdered milk and butter and high domestic farm-gate prices,” he said. “We can’t leave this out of the negotiations as it is has been at the heart of Entremont’s problems for some time now and if not addressed would undermine any tie-up with Sodiaal.”
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