Belgium-based group Greenyard Foods has decided to sell its stake in fruit growers co-op Veiling Haspengouw back to the local fruit and veg co-operative.
Greenyard will sell its participations in H-Fruit and H-Pack to the co-op, quoting trading and weather conditions as the cause of the latter’s change of strategy.
The company attained the stake last year when it merged with Belgian produce group Univeg, which took a stake in two of Veiling Haspengouw’s subsidiaries, buying 51% of H-Fruit – the marketing division of Veiling – and 50% of pear packer H-Pack.
Greenyard announced divestment of its stake on its website.
It wrote: “The ongoing Russian boycott, combined with poor weather conditions, have created continuing issues with the local, Belgian growers.
“The board of directors of Veiling Haspengouw has expressed its desire to go for horizontal integration with other cooperatives.
“Joining other players would give the possibility to realize the required cost reductions.
“Greenyard Foods wishes to support Veiling Haspengouw in its decision to go for scale which increases the efficiencies.
“As such, stepping out of the joint venture was opted.
“The agreement entails that the shares in H-Fruit and H-Pack will be taken over in full by Veiling Haspengouw.”
Financial details were not disclosed.
Greenyard Foods is a developer, producer and seller of fresh and prepared fruit and vegetables, flowers and plants.
It aims to make lives healthier by helping people enjoy fruit and vegetables at any moment of the day in an easy, fast and pleasurable way.
It employs around 8,200 employees in 25 countries worldwide, with an annual turnover of almost €4 billion (£3.4 billion).