Panzani and Cerealis enter talks to form a €1.8B European food group

Shareholders of France's Panzani and Portugal's Cerealis have entered exclusive negotiations to combine the two pasta and cereal makers. Backed by Cerealis' founding families, Sofina and CVC Capital Partners, the group would have an enterprise value of about €1.8 billion, roughly €1 billion in annual revenue and nearly 1,800 employees.

Why it matters: The merger pairs Panzani's footprint in France, the Netherlands and Central Europe with Cerealis' Iberian and Central European presence to create a scaled independent food group.