Denmark’s two cooperative slaughterhouse companies have agreed to combine in a joint company.
Tican, which had been looking to find an economic business partner for some time, said of the outcome, “With this solution, we have found a model that not only secures a future for Tican, but which also ensures that our owners – Danish farmers – can continue to contribute to value creation in the Danish food cluster.
“Originally, we never expected Danish Crown to be a potential partner, but this merger is undoubtedly the preferred solution for Tican’s cooperative members” Jens Jørgen Henriksen, chairman of Tican’s board of directors said.
At Danish Crown, the decision was reached after consulting with both Danish and foreign competition experts.
“Danish Crown is the result of mergers and acquisitions over the decades. Common to them all is that they have been very important for Danish Crown’s strategic position in the international slaughterhouse industry, which has seen extensive consolidation,” Erik Bredholt, chairman of Danish Crown’s board of directors said. “However, that is not the case with this merger. We therefore needed to ascertain whether the competition aspects would actually make a merger possible. And now we have received a clear indication that it is possible.”
Both Tican and Danish Crown are international businesses which generate most of their revenue outside Denmark, and a significant part outside the EU. Even following the Danish merger, the merged business will still remain a small player on the European market.
The merger of the two companies is conditional upon approval following meetings at both Tican and Danish Crown at the end of March, as well as by the relevant competition authorities.
Assuming the merger is approved, Tican’s cooperative members will join the new company on an equal footing with Danish Crown’s members. During the first two years, differences in equity and earnings between the two companies will then be evened out.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
