Prior to the talks, the two companies were considered rivals. Dunavant is located in Memphis, TN, while Allenberg is located in nearby Cordova.
Bloomberg.com quoted Allenberg CEO Joe Nicosia as saying, “Both parties are optimistic that we’re going to reach a positive resolution.” He declined further comment on details or the timing of any agreement.
The Memphis Business Journal reported that Dunavant employees were told the news Wednesday, and that they would be able to interview for their positions with Allenberg.
UPDATE: In a story from Reuters via Forbes.com, several industry insiders agree with members of our online audience that this move will decrease competition in the industry, and consequently prove detrimental to the market. Also included in the story from Reuters is this quote from a long-time industry analyst familiar with both companies: “The bottom line is that Allenberg is taking over Dunavant. When this is done, Dunavant disappears and the only firm left will be Allenberg.”