The French chicken processor Groupe Doux will be acquired by France’s largest poultry processor, LDC, and Saudi-based food group Al-Munajem after a French court gave the verdict saving 1,200 employees from the insolvent company of being discharged, Reuters reported.
Doux had lost €35 million annually in the last couple of years due to increasing competition in the Middle East market from Brazilian producers who have been increasing their exports to this region.
LDC will obtain a food processing unit from Doux, which the company wants to modernize and expand in order to supply poultry products to French consumers. Furthermore, the company plans to rehire workers from this facility, making available 912 jobs, and to invest €60 million in the assets acquired from Doux.
In addition, Saudi food producer Al-Munajem, a client and minority shareholder at Doux, acquired a unit which produced frozen chicken for exports.
