Greencore has merged its two food divisions into a single unit, to be headed by its chief operating officer, Mr Tony Hynes.

The company has decided to integrate its chilled foods division with its ambient and frozen food division to create a single operating unit.

This will trade alongside its ingredients and agribusiness unit, which includes sugar, malt, agribusiness and edible oils.

Greencore chief executive Mr David Dilger said the move to create a single convenience food division would "result in a single senior point of contact for our customers and a more focused business structure designed to assist the group in optimising synergies across our businesses".

"We felt it was the right time to unify the business and the leadership of those businesses," he said.

Analysts said the move would streamline the business and help to ensure it did not miss out on opportunities in an increasingly competitive trading environment, marked by growing pricing pressure on suppliers from large UK supermarket buyers such as Tesco and Marks & Spencer.

But it should not result in any fundamental change in earnings in the short-term.

"There's not a whole swathe of rationalisation coming behind it. It's more the appointment of a head honcho to deal with the multiples in the UK," said Mr Liam Igoe, analyst with Goodbody Stockbrokers.

The change in structure will result in the departure of the chief executives of the two businesses involved.

Ms Anne Truelove, a director of the company who joined Greencore as part of the Hazlewood acquisition and was head of the chilled foods division, and Mr Gerry Smith, head of the ambient and frozen division, will both leave Greencore.

Mr Hynes, who will relocate to Britain to head up the new food unit, will not be replaced in his role of chief operating officer, Mr Dilger said.

The latest move by Greencore follows the recent closure of two small malting plants in Britain. The company, which is due to release full-year results on November 23rd, said it was shutting the plants due to overcapacity in the industry and to allow it to focus on fewer, but more modern, sites.

Greencore shares closed seven cent lower at €2.80 last night.

Tony Hynes will head new unit