Agrifirm and Cehave: merger possibilities researched
Two large Dutch animal feed cooperatives Agrifirm and Cehave Landbouwbelang have announced to be preparing a merger.
The cooperatives announced to start researching the possibilities, which are expected to last for three to four months.
Both organisations expect strong financial and strategic advantages. The intended merger could broaden opportunities for product innovation, will decrease costs and will improve the purchasing position.
"This offers extra growth opportunities for both organisations' domestic and foreign activities. This will aslo lead to better technical and financial results for its members," the cooperatives indicated. In addition, Agrifirm and Cehave expect to be better capable to react to quick developments in the agricultural sector.
The merger research will focus on the creation of a new cooperative close to customers. Strategy, synergy advantages, organisation structure, rewards, name and location will all be discussed. A definite decision will be expected at the beginning of 2010, and is depending on antitrust authority approval.
Both cooperatives are active in both livestock and crop culture. Agrifirm is predominantly working in the middle of the Netherlands, whereas Cehave is strong in the South of the country.
Cehave Landbouwbelang in 2008 sold 2.70 million tonnes of compound feed and 1.46 million tonnes of moist feeds. Annual turnover in 2008 was €1.2 billion. The cooperative employs around 2,100 people.
Agrifirm ended 2008 with the sale of 1.634 million tonnes of compound feeds and 0.447 million tonnes of moist feeds. Turnover in 2008 was €900 million and the cooperative has 1,050 people on the pay roll.
The intended new cooperation with a joint turnover of 4.33 million tonnes of compound feeds and 1.9 million tonnes of moist feeds will be among the largest in Europe.
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