Russian poultry producer poised for take-over bid

One of Russia's leading meat producers, Cherkizovo Group, has signed a memorandum of understanding anticipating the acquisition of 100% of the share capital in the holding company of OAO Chicken Kingdom.

In a statement from Cherkizovo Group it said that Chicken Kingdom was one of the largest Russian poultry producers with a fully integrated poultry production cycle with operations in Lipetsk and Bryansk regions.

The company produces chilled and frozen poultry products under the Chicken Kingdom brand name and annual volumes last year were approximately 70,000t, the statement said.

Chief executive of Cherkizovo, Sergey Mikhailov, said: "This acquisition is a major step forward for Cherkizovo as we continue to benefit from the ongoing consolidation within the Russian poultry producing market.

"The deal makes us the number one chicken producer in Russia, and at the same time strengthens our position in the central region of the European part of Russia."