Merger of Danish Crown and Tican wins producer backing

The planned merger of Danish Crown and Tican, Denmark’s two cooperative slaughterhouse companies, has secured the support of producer members by an “overwhelming majority”.

Following a Tican general meeting and a Danish Crown board of representatives meeting, the two companies said that the merger debate has been “both matter-of-fact and constructive”.

Among Tican’s members, 91% said yes to the merger, while Danish Crown’s board of representatives gave their 100% backing for the plan.

“Our members’ primary concern is how they will get through the next two years when a proportion of their supplementary payment will go towards equalising the difference in the current earnings levels and equity,” said Tican’s chairman, Jens Jørgen Henrikesen. “However, that does not change the fact that there was broad support for the merger.”

Danish Crown’s chairman, Erik Bredholt, voiced his “delight” at having gained “such massive support” for the merger.

“It shows that this is the right solution,” he said, adding that it created an excellent foundation for pressing ahead with merging the two enterprises.

The deal, of course, has still to be approved by the relevant competition authorities.

See previous merger report

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