Belgium-based produce group Univeg is looking to invest in parts of local fruit and veg co-operative Veiling Haspengouw.
The companies have signed a letter of intent that proposes Univeg will take a stake in two of Veiling's subsidiaries. It is has agreed to buy 51% of H-Fruit – the marketing division of Veiling – and 50% of pear packer H-Ppack.
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Any deal is still subject to due diligence, the approval of anti-trust authorities and the green light from the national GMO authority.
The advantage to Veiling, which will continue as a co-operative, is access to a broader distribution channel, the companies said.
"As a worldwide supplier, and service and distribution company, Univeg is a key player in the imports from Europe and overseas", said Francis Kint, CEO of Univeg. "Today, our main target is to put our competencies at the service of the local produce, both in the domestic and export markets. A close cooperation with a producer organisation is innovative, but also makes good sense. Taking this step forward with Veiling Haspengouw is the culmination of many years of collaboration."
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Luc Bels, chairman of Veiling Haspengouw, said the deal "will create a win-win-win situation for the growers, personnel and H-Fruit alike".
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By GlobalDataUniveg itself is set to become part of a larger organisation. Earlier this month, the company, frozen and canned food group Greenyard Foods and agribusiness Peatinvest announced they had reached a final agreement on their plans to merge.
