Talks on a merger between two of France’s leading dairy groups, Entremont Alliance and Sodiaal, scheduled for completion by the end of the month, are now unlikely to be concluded before the start of 2010, according to French media reports.
A spokesman for Sodiaal declined to comment on the reports, other than to tell just-food that the negotiations were wide-reaching and that there still remained several days before the deadline expired. Officials at Entremont could not be reached.
The reports speculated that the recent improvement in prices for commodities such as skimmed milk powder and butter on world markets could partly explain the delay.
Given the upward movement in prices it would not be in the interests of Entremont’s major shareholder, Belgian businessman Albert Frère, to hurry to conclude a deal amid a likely revaluation of the embattled dairy group’s assets.
Other factors put forward are the uncertainties surrounding Entremont’s negotiations with its banks over debts and difficulties in convincing its milk suppliers to become shareholders in the new group.
