RENNES, France, Nov 8 (Reuters) - Troubled French poultry group Doux is close to signing a rescue deal whereby its main client, Saudi food distributor Almunajem, will take a minority stake, a moment of rare good news for a French meat industry shaken by plant closures.
"Discussions are well on track," a Doux spokesman said on Friday.
The deal, which is due to be signed in the next few days would see D&P, a family-owned investment firm led by Didier Calmels, take 52.5 percent of Doux, with Almunajem and the Doux family taking the rest.
The northwestern region of Brittany, the heartland of France's pork and poultry businesses, has endured a series of plant closures since Doux went into court administration in 2012 in the face of mounting debts.
The poultry group laid off about 1,000 workers last year but still employs 2,400 people.
Agriculture Minister Stephane Le Foll said on Friday that French public investment bank BPI could help raise up to 10 million euros ($13 million) a year to allow Doux to invest and modernise.
Le Foll, who is in Brittany on Friday to detail a plan aimed at reviving the regional industry, confirmed on Europe 1 radio that a deal was close on Doux.
"There is a shareholders' agreement about to be put together between the buyer, the Calmels family, the historical owner the Doux family, and the Saudi Almunajem, which is a manufacturer but has also been working with Doux for 40 years in the Middle East market," he said.
The minister is also due to meet representatives of fellow poultry processor Tilly-Sabco which said last week it will halt production for its main export business, putting at risk about 1,000 jobs in Brittany.
It had partly blamed the decision on the scrapping of European Union export subsidies this year.
Doux and Tilly-Sabco had been virtually the sole beneficiaries of the EU subsidies, which had allowed them to compete in the Middle East with the world's largest poultry exporting country, Brazil.
The difficulties of Brittany's meat industry have provided a further headache for the French government that is battling with a record-high number of job-seekers.
Local discontent has been fanned by plans to introduce an environmental tax on trucks next year, sparking violent protests and leading to a government climb-down last week.
(Reporting by Pierre-Henri Allain; Writing by Sybille de La Hamaide; Editing by David Goodman and Greg Mahlich)
((Sybille.deLaHamaide@thomsonreuters.com)(+331 4949 5145)(Reuters Messaging: sybille.delahamaide.thomsonreuters.com@reuters.net))
Keywords: FRANCE DOUX/SAUDIS
