Ernst & Young expert report to advise shareholders

GREENCORE will apply to the Commercial Court on Monday to approve the appointment of accountancy firm Ernst & Young as “joint expert” to report on the proposed merger of Greencore and Northern Foods to shareholders of both companies.

After completion of the expert report and other requirements for cross-border mergers, Greencore intends to apply to the court to approve the proposed merger.

Both companies hope to have the merger completed by March 2011. Between them, they have sales of some €1.7 billion and employ 17,000 people. They say the merger will “generate significant opportunities for costs savings and operational efficiencies” of some €40 million.

The proposed merger is the first involving public limited companies to come before the Irish or British courts, Paul Sreenan SC, for Greencore, said.

Mr Justice Peter Kelly fixed Monday for the hearing of Greencore’s application to appoint Ernst & Young and directed the names of partners in that firm’s Dublin branch be provided to the court.

The new group to be formed will be called Essenta Foods with Greencore and Northern Foods shareholders each holding about 50% of the share capital.