Marel Food Systems hf. announced on 28 November that the company had entered into an agreement to acquire the Stork Food Systems division of Stork N.V. based in the Netherlands. The purchase price is €415 million. The acquisition was subject to:

• a takeover offer by London Acquisition N.V. for all shares in Stork N.V. being declared unconditional;
• the opinion of the Stork Work Council;
• the approval of European competition authorities.

The European competition authorities have now approved without reservation the acquisition of Stork Food Systems by Marel Food Systems hf. The takeover offer by London Acquisition N.V. for all shares in Stork N.V. was declared unconditional on 17 January 2008. The Stork Works Council has also delivered a positive opinion on the acquisition. As a result, all the conditions in the agreement between Marel Food Systems and Stork N.V. have been satisfied.

Marel Food Systems hf. has financed the entire purchase price with loan financing and the issue of new share capital, underwritten by Landsbanki Íslands hf., with the support of the company’s largest shareholders. A new offering of shares in Marel Food Systems to pre-emptive right holders is scheduled for Q2 2008.

United, the two companies will be a forerunner in the development of equipment for the food processing industry. Their combined turnover is €660 million and the number of employees exceeds four thousand. Marel Food Systems will now have the critical mass to enter emerging markets and is better placed to provide comprehensive services to large international clients.