Israeli food maker Elite Industries has said that its board has approved the company’s proposed merger with parent firm Strauss-Elite, in a move that will give the Strauss family greater control.
After the merger, the Strauss family will hold a 74.45% stake in the new enlarged company, which groups together Strauss’ dairy and salad operations with Elite’s chocolate and snacks operations, reported Reuters.
Under the terms of the merger, Elite is to buy Strauss’ 80% stake in Strauss Dairies and 100% of Strauss Salads in exchange for 49.2 million Elite shares.
The merger does not include the 49% stake the Strauss holds in Strauss Ice Cream, an operation that is majority owned by Anglo-Dutch consumer goods giant Unilever.
The merger still requires approval from certain authorities and shareholders.
