Mother's Pride is to buy a leading independent bakery in Northern Ireland in a deal which has raised fears of redundancies among trade unions.
The major British bakery announced tonight it was to take over the Ormeau bread bakery business. Contracts were exchanged today and completion of the deal is due to take place tomorrow.
The south Belfast based Ormeau Bakery was established in 1875 and employs 400 people. Mother's Pride has a further 300 workers at its local plant in west Belfast.
There has been widespread speculation a merger would result in redundancies in an industry which has already seen hundred of job losses as competition forced down prices.
The Transport and General Workers' Union which has members in each company said they were seeking a meeting with management to discuss the employment prospects of their members.
A union spokesman said: "The management say it is in the best interests of all concerned. We are seeking a meeting with senior Mother's Pride management because obviously we have a number of concerns regarding the future long term employment prospects of out members in both companies.
Mr Alan Stephens, managing director of Mother's Pride in Northern Ireland said they saw the merger as an exciting time for their business in an increasingly competitive marketplace.
"We see this merger as essential if we are to maintain a viable long-term presence in Northern Ireland," he said.
The Ormeau brand name is to continue and Mr Paul Rothwell chief executive of Ormeau said he took the deal as a major vote of confidence in the brand from one of the best UK food companies.
"I am confident that joining with a strong food group will help Ormeau to draw on the innovative track record of Mother's Pride. We should be able to open up sales and export opportunities," he said.
PA