Russian meat processor Cherkizovo announced today (30 March) that it has reached an agreement to acquire agro-industrial group Mosselprom.

The company said that as part of its strategy of “dynamic development” it has reached an agreement to potentially acquire a 100% stake in Mosselprom following legal and financial due diligence.

According to Cherkizovo, it holds 7% market share of the Russian poultry market, while Mosselprom holds 2% share.

The transaction remains subject to approval by Russian anti-monopoly authorities.

Yesterday, the company said that net income increased by 21% during 2010 to reach US$144.4m, while revenue was up 17% to $1.19bn.

It added that it expects a “challenging” 2011 as rising grain prices increase its costs, while it anticipates that it won’t be able to offset these costs with higher prices.