French agricultural cooperatives Vivadour and Terres du Sud have entered “exclusive discussions” to explore a potential merger.
In a statement, Vivadour said the co-ops aim to jointly build the “full agricultural, agri-food, and distribution potential of unified terroirs”.
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Vivadour added the boards of directors of both the cooperatives have approved “the study of a merger”.
Employee representative bodies across both organisations have been informed about the proposed initiative, the statement said.
Vivador and Terres du Sud both grows and sell a range of food ingredients to manufacturers.
Terres du Sud’s consumer-facing brands include the poultry brand Blason d’Or, duck meat business Delmond L’Origine and fruit juice lines Vallée Verte and O’natur.
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By GlobalDataO’natur offers a “premium” range of fruit juices for specialist networks such as organic, wine merchants, delicatessen stores, café-hotel-restaurant and caterers.
Vivadour said the proposed merger of the co-ops would be based on “the complementarity of their territories, their businesses, and their skills.”
If the co-ops decide to merge, the move is contingent on approval from the French competition watchdog.
The cooperatives will also consult with staff representatives and seek approval from cooperative members, potentially through a vote at an Extraordinary General Meeting scheduled for “the end of 2025”.
Last month, French agri-food cooperatives Euralis and Maïsadour announced plans to create an entity with a turnover of around €3bn ($3.2bn) through a merger.
Two years ago, the co-ops pulled plans to combine their operations in foie gras, salmon and direct sales after opposition from France’s competition watchdog.
