Vivartia Merges With Mevgal, Consolidation Seen As Key Strategy To Combat Recession

Greece's largest dairy and food group, Vivartia, which was bought by local investment fund Marfin Investment Group (MIG) in summer 2007, is to acquire a 58% stake in Greek dairy firm Mevgal. The short-term motivation for the move can be seen as defensive, with both firms searching for cost saving measures as consumer spending retrenches and margins get squeezed. However, over the longer term the enlarged firm should be in a stronger position to expand internationally, with Greek dairy products having delivered strong export growth in recent

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