Delta Holdings S.A. is set to become the largest company in the food sector in Greece, following the acquisition of the Greek snack food company Chipita. Delta Holdings will also absorb Chipita's two subsidiaries: Goodys and Barba Stathis.

Chipita shareholders will receive 0.33 new shares in Delta Holdings for every whole share held. Goodys shareholders will be given 1.05 shares for each share and shareholders in Barba Stathis will receive 0.54 Delta shares of every Barba Stathis share they hold.

In order to generate the capital necessary for Delta Holdings future business strategy, the company has sold Delta Ice Cream, which operates in Bulgaria, Romania, Serbia, Montenegro and other FYR markets to Nestlé Hellas SA. Delta Ice Cream, with a consolidated annual turnover of €123m in 2004, will be sold to Nestlé for €240m.

Of the merger, Dimitris Daskalopoulos, chairman of the board of directors of Delta Holding said: "This landmark unification of Delta Holding, and its subsidiaries, with Chipita creates a power-house of leading food brands and is beneficial to all our shareholders and stakeholders."