Grupo que detém o Pingo Doce vai investir na produção de leite e avança para a compra da fábrica de transformação da cooperativa de Portalegre.

The Competition Authority (CA) has given the green light to the merger between Serraleite and Jerónimo Martins. The group that owns the Pingo Doce supermarket will buy the milk processing factory and production derived from this cooperative of producers of Portalegre in a deal that passes, for now, the trespass of these assets.

In a statement, the PCA says the deal “is not likely to cause significant barriers to effective competition in the markets for the acquisition of raw milk, in Portugal, whose exact definition is left open, the production and marketing of UHT milk, the exact geographical boundaries is left open, and the production and marketing of cream, the exact geographical boundaries is also left open “.

The main operators of large retailers have increasingly invested in the production, creating clubs and organizing suppliers who have to comply with specific rules. Jerónimo Martins has long planned to invest directly in agriculture and, in 2009, made a deal with the Serraleite to enhance production. The cooperative is a leading supplier of supermarket chain Pingo Doce and, at the time, Pedro Soares dos Santos, CEO, admitted that his vision for the joint project was to create a “Lactogal II”, which owns the brand and Mimosa dominated the milk market. Later, in 2012, the group justified the entry in this sector “with the need to protect sources of supply.”

During the presentation of financial results 2014, just over a week, Pedro Soares dos Santos returned to emphasize that the company intends to invest in other businesses of the agricultural sector, particularly in fish and meat. Jerónimo Martins Agrifood is a sub-holding and “have to grow.” “It was created for a milk factory,” he said, not wanting to go further details on new investments. “I have a lot in sight, but it is just for me,” he added.

The purchase by transfer of the plant Serraleite (including their employees) allows the Jerónimo Martins manage the milk processing operation until the new plant is ready, which should happen in the first quarter of 2017. The group will invest 40 million euros in increasing the production capacity of UHT milk, butter and cream and ensures that “the flow of milk production of the current members of the cooperative will be assured.” The Serraleite will also have a stake in Jerónimo Martins Dairy.

The cooperative collects annually 20 million liters in the Alentejo region, which is equivalent to 1% of total national collection.

[Source]