Cooperative group InVivo has entered exclusive talks to acquire family-controlled Soufflet in a deal that would create one of Europe’s biggest agricultural businesses with 10 billion euros ($12.17 billion) in sales, the French firms said on Wednesday.
Reuters reports the consolidation could let InVivo, a grouping of 192 farmer-owned cooperatives, and century-old Soufflet better compete with rivals such as Cargill and Germany’s BayWa.
A deal would bring together their international grain trading activities while also associating complementary businesses with limited overlap, including Soufflet’s flour milling and malt production and InVivo’s wine distribution and garden retail.
Reuters noted that InVivo has in recent years sold its animal nutrition division Neovia to U.S. agribusiness group Archer Daniels Midland, while expanding its garden retail business and entering wine merchandising.
