October 1, 2009
Agrifirm and Cehave study on potential merger
Dutch agricultural cooperatives Cehave Landbouwbelang and Agrifirm want to merge, and have started a study for this that will take three to four months.
Agrifirm and Cehave Landbouwbelang anticipate major financial and strategic benefits from the merger.
The proposed merger provides a broader base for product innovation, reduces the costs and strengthens the purchasing position. This offers the companies extra opportunities for both local and overseas growth, which will result in better technical and financial results for the members.
The proposed merger will also improve response to developments in the agricultural sector.
The study will cover aspects such as strategy, benefits of synergy, organisational structure, remunerations for the members and the name and location for the new company.
The members of both cooperatives have been informed about the merger study. They will be involved in the preparations for the decision-making about a merger, and the members'' councils are expected to be able to make a decision on this somewhere around the New Year.
The proposed merger will shortly be presented to the Netherlands Competition Authority for approval.
Cehave Landbouwbelang''s core activities cover animal feed and raw vegetable materials and business resources. The company has production facilities in the Netherlands, Belgium, Germany, Hungary, Poland and China.
Agrifirm supplies products and services for crop cultivation and animal husbandry. It operates throughout the Netherlands and Germany.