The joint venture would create a local processed meat leader, with a combined market share of over 16% and revenues of around €120 million. While Romania will keep its position as the group’s core market, the new joint venture plans to increase presence in South-Eastern Europe.

“The merger between Caroli Foods Group and Campofrio Food Group plans to develop the new company by using its competitive edge and the resources from the two companies as well as adding value. The new joint venture will operate under Caroli Foods Group brand” the two companies said in a release.

Caroli Foods will hold the majority stake of 51% while Campofrio will hold 49%.

The board of the newly-formed joint venture will be formed of five members, representatives of Caroli Foods and Campofrio, and will be chaired by Talal El-Solh. Haluk Akdemir, the current CEO of Caroli Foods will take up the chief executive role in the new joint-venture.

The deal will be subject to Competition Council scrutiny.