Fusion Tican and Tönnies are joining up

by Editor fleischwirtschaft.com

Monday, November 02, 2015

Photo: Tican

Franework agreement between Tönnies and Tican signed.

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fleischwirtschaft.com — DENMARK, Thisted. Tican a.m.b.a. has signed a framework agreement on the transfer of shares in Tican A/S with the German food company Tönnies. The agreement has been put in place after the merger agreement with Danish Crown expired at midnight October 31st 2015, without having obtained approval from the Danish Competition and Consumer Authorities.

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Tican A/S is the holding company for all of Tican's activities within pig slaughtering and meat processing with the companies Tican Fresh Meat A/S, Direct Table Foods Ltd., Pro-Pak Foods Ltd., Tican UK, Tican Chilled and Nove Sp.zo.o. The sales companies in Germany and China are also covered by the agreement.

According to the agreement a due diligence review will take place during November. A share transfer agreement between the parties is expected end November. The transaction is expected to be approved by the European competition authorities; however it is expected that this approval will take place within approximately one month from the notification – around year end.

When this agreement has been approved, the financial interest of the cooperative members for a competitive residual payment for the financial year 2014/15 is secured. The agreement with Tönnies also provides confidence that the future settlement price of finishers and sows will be at a competitive level. It has also been of crucial importance for the board and management to ensure the future operation and development of Tican's companies.

Source: Tican