Reports circulating of meat giants Dunbia - 2 Sisters merger

Reports have began circulating regarding a merger between UK meat processing giants Dunbia and 2 Sisters.

The deal would end months of speculation that Northern Ireland’s Dunbia was looking for buyers.

However, it has been widely reported that Dunbia has been exploring financial options for the business, with a view to a potential sale.

The County Tyrone-based processor sent out a teaser document, reportedly being prepared to go out to interested parties at the end of last year.

At the time, the company said it had received several 'serious expressions of interest' from investors over the past two years and was now considering its choices.

Earlier this month Danish Crown, Cranswick and Brazilian firm JBS were touted as potential buyers for parts of the business.

A merger with Dunbia would give 2 Sisters a stronger hold on the red meat sector, with much of the company’s revenue still driven by its poultry operations at the moment.

2 Sisters also recently announced it aimed to create 200 jobs at its facility in Derby, which would focus on producing meal options including kebabs, ready-to-eat chicken and ready to cook chicken. The factory was the former site of S&A Foods.

2 Sisters clocked up like-for-like sales of £773.6m and adjusted pre-tax profit of £164.5m in the 52 weeks ending 1 August 2015 and employs 23,000 staff.

Dunbia, meanwhile, posted sales of £826m and pre-tax profit of more than £6.5m in the year to 29 March 2015. The County Tyrone-based red meat firm employs more than 4,000 people across the UK and Ireland.

Brothers Jim and Jack Dobson built the company up over the last 40 years from a small butcher's shop in Dungannon. Dungannon Meats was rebranded as Dunbia in 2006.