Cerealis, Better Foods to merge milling units
The merged company will become a dominant player in the production and marketing of flour and cereal-based products, with a diverse portfolio spanning pasta, biscuits, breakfast cereals, cereal bars, and industrial flours.
PORTUGAL – Cerealis Group and Better Foods Group have reached an agreement to merge their respective milling operations, creating a new company jointly owned 50-50 by the shareholder structures of the two groups.
The financial terms of the agreement were not disclosed, but the merger is expected to significantly strengthen the competitiveness and industrial capacity of Portugal’s milling sector.
The Better Foods group is the largest Portuguese milling group, producing flours and food ingredients across multiple facilities. Its portfolio includes companies specializing in wheat, rye, rice, and corn flour.
Cerealis is one of Portugal’s largest industrial and commercial groups in the agri-food sector, including pasta and industrial flours.
The agreement, announced Dec. 16, brings together Cerealis Moagens and the milling units of Better Foods; Ceres, Germen, Carneiro Campos and Granel.
The agreement was precipitated by the rapid transformation of the Iberian market, the companies said, giving rise to a need to strengthen the competitiveness and industrial capacity of the Portuguese milling sector while responding to the increasing consolidation of the value chain across the region.
“The new scale of the main Iberian operators is redefining the competitive environment in which we operate,” said Pedro Moreira da Silva, chief executive officer of Cerealis.
“This merger allows us to keep pace with that evolution by enhancing efficiency and strengthening our capacity to invest, innovate and deliver a more robust service. It is a fundamental step in building an industrial project capable of responding to a more demanding market, while ensuring increasing quality standards and continuity of supply for our customers.”
The priorities of the merger include increasing operational efficiency across the national territory; strengthening investment capacity and industrial modernisation; enhancing the resilience of the cereals value chain; and improving processes and support solutions for customers and partners.
“This agreement represents an opportunity to combine capabilities and reinforce the position of the Portuguese milling industry in an increasingly consolidated Iberian context,” said Armando Miranda, CEO of Better Foods Group.
“We believe that this merger will accelerate industrial modernization and improve our ability to serve the market, benefiting customers, employees and partners.”
The transaction is subject to review by Autoridade da Concorrência, the Portuguese Competition Authority.
Together, the merged company will become a dominant player in the production and marketing of flour and cereal-based products, with a diverse portfolio spanning pasta, biscuits, breakfast cereals, cereal bars, and industrial flours.
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