The proposed £1.2bn acquisition of RHM by Premier Foods is likely to lead to head office job losses rather than factory closures, analysts have predicted.
The bulk of the losses arising from the acquisition, which is being scrutinised by the Office of Fair Trading, were likely to come from administrative functions, such as finance, human resources and purchasing, as Premier aimed for synergies of £85M a year.
The biggest savings would be made from the closure of the RHM HQ in Marlow, Buckinghamshire, rationalised administration, improved buying terms and more efficient distribution, said Graham Jones at Panmure Gordon.
A combined Premier/RHM business would have sales topping £2.6bn, creating the largest food manufacturing business in the UK.