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Spain: Agroponiente and Nature Choice in merger negotiations

Almeria's horticultural sector aims to increase its power against larger distributors; the old challenge of concentrating supply continues slowly, but steadily. Although last year's campaign in Almeria was record-breaking in terms of figures, and the current one is very likely to be even better given the current prices, firms in the sector are not taking it easy.

Some of the most important cooperatives have already made a move, while others are in the midst of negotiations to increase their production volumes and proportionally win negotiating power. 

In this situation is Grupo Agroponiente, which has been in merger talks with Nature's Choice for several weeks.

Grupo Agroponiente is a 26 year old firm directed by Antonio Escobar, formed by Agroponiente and Vegacañada. The former has a strong presence in the West and is based in the town of El Ejido, while the latter is based in El Alquián, in the East. This diversity allows for a wide range of products and specialties.

Nature's Choice, chaired by Manuel Sánchez, is an agricultural processing company based in El Ejido and founded in the year 2000. Despite its youth, it has a turnover of 40 million Euro and produces close to 50 million kilos. It specialises in Almeria cucumbers, California peppers, tomatoes and melons and has been involved for several years in the convenience foods sector with its snack cucumbers, sweet bite peppers and Cherry and Pear tomatoes.

Grupo Agroponiente, in total, produces around 250 million kilos, with over 100 million kilos of tomatoes last season alone. Other specialities include peppers, cucumbers, melons and watermelons.

The merger will result in a giant firm able to produce, depending on the campaign, between 250 and 300 million kilos, with a turnover of close to 200 million Euro, making it one of the province's leading groups.


Source: Elalmeria
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