Spanish meat major Grupo Vall Companys is aiming to snap up local peer Montesano Canarias.
Catalonia-based Vall Companys has started talks to “integrate” the Canary Islands company with its own subsidiary Frimancha Canarias, which is handling the discussions.
If the deal goes through, it will be Vall Companys’ third piece of M&A this year.
A company source told Just Food: “Frimancha Canarias is currently in discussions with Montesano Canarias to integrate the businesses of both companies in the region, study and establish potential synergies that would optimise and make their operations more competitive.”
The source said neither company will provide further comment until a deal is finalised.
Family-owned Vall Companys, which dates back to 1956, is an agri-food business working across beef, pork and chicken and producing cured, cooked and processed meat. In 2021, its turnover was €2.29bn ($2.51bn).
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Montesano Canarias, founded in 1965, produces a range of meat products including sausages, burgers, ham and morcilla.
It processes more than 1,536 tonnes of meat per year from its facilities in the Tenerife town of El Rosario.
In March, acquisition-hungry Vall Companys bought a minority stake in Brazil pork processor Master Agroindustria.
Two months earlier, it took full control of Spanish meat peer Embutidos Rodriguez.