Bloomberg — The biggest merger ever of dairy, meat and poultry products will close in 2020, with more than $10 billion in combined deals, according to industry estimates.
The combined companies, based in Texas, will include the world’s biggest producer of dairy products, U.S. Dairy Farmers.
The merger will create a $10-billion combined business that also includes $4 billion in beef and $4.2 billion in chicken products, the company said Wednesday.
A merger of the two companies could lead to more consolidation in the dairy and poultry industries.
The combined companies are among the top three producers of pork, according the U.N. Food and Agriculture Organization.
The companies, along with the world-famous dairy processors JBS SA and Cargill Inc., will share a $1.5 billion investment fund.
They expect to complete the deal in the first quarter of 2021.
The deal, known as Cargills Cargnills, is expected to take about 12 months to close.
The merger is one of several deals being considered by the U,S.
Federal Trade Commission.
It could also have other regulatory ramifications.
The U.K.-based multinational company will merge with rival Sainsbury’s Group Plc into the same company, which is expected in 2021 to merge with Kraft Heinz.
The companies have also said they are in talks to merge to form a new food and beverage company.
The dairy products and poultry companies will be able to offer products at prices comparable to the prices on the world market, the combined company said.
The deal will also make it easier for customers to switch products, it said.
The company will use its technology to offer consumers more choices and be more efficient.
The merged companies will also share data on sales, sales performance and customer preferences, it added.