Dunbia and 2 Sisters have refused to comment on speculation they will form a £1.3 billion joint venture.
The rumours were reported on The Grocer yesterday, which claimed the two were in ’exclusive talks’ to merge their red meat operations in a £1.3 billion joint-venture spin-off.
Farmers Guardian approached both 2 Sisters and Dunbia about the speculation, but both declined to comment.
It comes just months after Dunbia confirmed it would consider a sale or merger with other firms in a bid to raise funds to expand operations.
In December, a spokesman for Dunbia said the firm had received ’serious expressions of interest’ over the past two years and suggested it was open to offers.
Commenting on the speculation surrounding a Dunbia and 2 Sisters merger, NFU livestock chairman Charles Sercombe, said: "I do know that Dunbia has been looking at strategic investment for a while and I would not be surprised if Dunbia moves into an arrangement with other players.
"There have been a lot of rumours about it but it remains to be seen whether it all goes ahead."
Mr Sercombe added that if a deal did go ahead, it was important producers’ ability to sell stock was not affected.
"The concern from a farmer point of view is that if there are fewer processors in fewer hands it might give farmers fewer marketing opportunities for their produce," he told FG.