Limagrain, the French agricultural co-operative, has announced it has signed a contract with the majority shareholder of Brossard with a view to acquiring the bakery firm.

Limagrain and Guy Schumacher announced on Firday that they signed the contract for Limagrain to acquire 77.16 per cent of the capital stock and voting rights of Brossard, for a price of €8.29 per share.

The operation is subject to prior approval from the French competition regulator.

When the operation is completed, the purchaser will hold more than 50 per cent of the capital stock and voting rights of Brossard. Thus, in compliance with the provisions of articles 235- 2 and 235-3 of the General Regulation of the AMF (authority governing the French stock markets), the purchaser will register with the AMF, as soon as possible, a public offer for all the securities of Brossard which the purchaser does not yet hold.