InVivo Group acquires Soufflet Group for EUR 2.3 bln
InVivo Group, a French national union of agricultural cooperatives, has approved the acquisition of the family-owned Soufflet Group in a deal with a potential value of EUR 2.3 bln (USD 2.76 bln), Reuters reports.
The deal, the result of exclusive negotiations that began in January, will produce a group with sales of around EUR 10 bln. It will be focused on a variety of activities, from grain trading to wine distribution.
This transaction, which is subject to the authorization of relevant competition authorities, could be finalized by the end of 2021, InVivo informs.
InVivo CEO Thierry Blandinieres notes that the forthcoming merger marks a new stage in the reorganisation of InVivo, which brings together 192 farmer co-operatives. He told reporters last week that he wanted the takeover of Soufflet to be a step towards creating a European giant in the future capable of competing with global crop traders.
"This combination between two French groups of international standing will create a pillar of French food sovereignty. The new entity will also be better positioned to face increased European and international competition in its different business lines, and to provide sustainable solutions to French agriculture and all stakeholders of the French agri-business sector as to support the agricultural and food transition," InViVo says in a statement.
The Soufflet subsidiary in Ukraine, Soufflet Agro Ukraine, stated previously that "the merger has no impact on any of Soufflet Group's businesses (incl. seeds and inputs distribution, silo services and trading)."