1 billion euro merger talks in pasta

French pasta producer Panzani and Portuguese Cerealis started exclusive negotiations to merge their activities. Companies aim to grow in different markets and product categories through production, brand and innovation investments.

The merger is planned to create a European food group with an annual turnover of approximately 1 billion euros and approximately 1,800 employees. The group's enterprise value is projected to be approximately 1.8 billion euros.

According to Bloomberg, Panzani earned sales revenue of 620 million euros in 2025. Cerealis' sales revenue was 400 million euros. Panzani's product portfolio consisting of pasta, couscous and sauces will be gathered under the same roof with Cerealis' pasta, breakfast cereal, cereal bar, biscuit and flour products.

Companies will maintain their operational independence

The combined group is planned to be headed by Pedro Moreira da Silva, Vice Chairman of the Executive Board of Cerealis.

Moreira da Silva stated that the merger will strengthen the innovation capacity of both companies and create new growth opportunities.

Both companies will maintain their operational independence. Panzani's headquarters will remain in Lyon, France, and Cerealis' headquarters will remain in Porto, Portugal.

CVC Capital Partners will retain a minority stake in the new group, along with Cerealis' existing shareholders. Completion of the transaction will be subject to a process of employee consultation and regulatory approvals.

Cerealis also took a growth step in Spain

The merger talks follow Cerealis' move to expand its pasta operations in Spain.

In February, Cerealto reached an agreement to sell its pasta business and Venta de Baños production facility to Cerealis. The agreement regarding the transfer of the business line, which produces an annual turnover of over 100 million euros, also included the transfer of approximately 125 employees.

While Cerealto directed its investments to snack and breakfast products, it stated that its pasta activities could be developed under an operator specialized in this field.