Merger of Spain's Two Largest Olive Oil Cooperatives Creates World's Largest Producer

Consolidation of olive oil producers proceeded on a grand scale when Spain's two largest olive oil cooperatives announced their intended merger. Hojiblanca and Cordoliva finalized a merger agreement that will make the combined producer the world's largest in terms of production volume -- 80,000 tons per year -- and Spain's largest supplier of extra-virgin olive oil.

Hojiblanca manager Antonio Luque explained that the merger's objective was the ability to compete in a market where the tendency is integration, and gave as an example the mergers of cooperatives in other European countries that have resulted in their capturing 90 percent of their respective countries' market share.

The decision to merge the two cooperatives, which was approved by the cooperatives' administrative councils, will become final during an extraordinary general assembly of the partners that will probably occur this month. The name of the combined cooperative will be Hojiblanca Sociedad Cooperativa Andaluza and it will be headquartered in Antequera. Another office will be located in Cordoba's Villarrubia. For more information, visit www.hojiblanca.com.