Australian food group SPC Ltd said its AUS$81 million (45.6million euros) friendly merger with central Victorian neighbour Ardmona Foods Ltd is progressing well with details of its proposed capital raising set to be finalised within two weeks, Industry Search reports. Last month SPC said it would undertake a capital raising for an undisclosed amount to help fund the Ardmona acquisition and provide the fruit and vegetable canner with additional capital.SPC said it was working with Ardmona to further identify financial benefits of the proposed merger. "The directors remain confident that the merger will be earnings per share positive from the first year of operation," SPC told the Australian Stock Exchange in a merger update. SPC said it also remains confident the Australian Competition and Consumer Commission (ACCC) will back the merger. The ACCC is assessing the SPC's merger application, and a response is expected early in November. Under the cash and scrip merger SPC will pay AUS$13.5 million (7.6million euros) in cash and another AUS$67.5 million (38million euros) in shares to Ardmona shareholders who are mainly made up of fruit growers. The new entity, Industry Search reports, will be called SPC Ardmona Ltd, and will be a major Australian food industry player with annual sales of more than $430 million (242million euros) and an expected market capitalisation in excess of $150 million (84.5million euros).
