The acquisition sees VION strengthen its UK position, where it has successful operations in the fresh pork, bacon and sausage markets.

The takeover bid has now to be submitted to the competition authorities.

"This announcement is evidence of the great importance VION attaches to the UK market. At the heart of VION's business is a 'Passion for Better Food' and Grampian is key to developing this strategy," said Daan van Doorn, Chairman of the VION Board of Management.

"The combined group will become a major player in the UK food industry. Together with Grampian's management we want to further intensify the cooperation with our retail clients by investing in Grampian, sharing knowledge and developing partnerships."

VION is also one of Europe's largest food companies. Its roots lie in the agricultural and meat sectors and it has strong ties there. VION holds a central position in the supply chain and translates market and consumer developments to the agricultural sector. VION thereby provides an active contribution to and investment in a sustainable future for the agricultural sectors in Holland, Germany and the UK.

In the UK, VION currently has four business operations. Key Country Foods is a major UK retail bacon processor. VION also has a majority share in J&J Tranfield, a leading supplier and manufacturer of pizza and sausages. VION Food UK Ltd is responsible for the sales of bacon, fresh pork, beef and convenience products to the UK market.

VION company Oerlemans Foods offers fresh frozen vegetables, potato products and fruit through its UK sales office.

Grampian Country Food Group Ltd was founded in Scotland in 1980 and has developed into one of the UK's leading food companies, supplying the major multiples with chicken, pork, beef and lamb. The company currently employs 17,500 staff (of which 4,500 in Thailand), with an annual turnover of £1.7 billion (€ 2.5 billion) and has production locations in the UK and Thailand. The head office is located in Livingston, Scotland.

Grampian will be integrated into the new VION division, VION UK. This division will be managed from the UK and led by Ton Christiaanse, who will be appointed CEO VION UK. Ton Christiaanse is currently COO of VION’s Convenience Division.

Peter Barr, formerly chairman of the Meat and Livestock Commission in the UK, will be appointed as non-executive Chairman of the Board of VION UK.