Australian olive oil producer Olea Australis today (Thursday) announced it has entered into a heads of agreement with Premium Olive Managers Limited, the operators of the Larenta Olives Project, with a view to a potential merger.

The companies are exploring how to best take advantage of their respective olive tree plantings which are both located in the Moore River Region of Western Australia, the company said. The combined output of the resultant extra virgin olive oil will give a merged group considerable presence in the world extra virgin olive oil market.