Cherkizovo is to accelerate is expansion by purchasing two "state-of-the-art" piggeries from its controlling family, in a $100m deal which will involve in the main the assumption of debt.

The meat group said its pork production capacity was on course to top 100,000 tonnes by the end of 2011 after the purchase of the two production complexes in central Russia which the group cloiamed were among the most advanced in Europe.

"You still tend to get 'mom and pop' operations in the way they are run in Russia," a company spokesman said.

"These are very different."

The sites, each with a capacity of 12,500 tonnes live weight per year, include breeding, rearing and fattening facilities, equipped with technology bought from Denmark's DanBred.

'Significant milestone'

The acquisitions will also provide "substantial" synergies with existing Cherkizovo sites nearby, the group.

However, the deal, which will see the group pay $20m in cash and assume $80m in debt, is still subject to approval by independent board members.

These include Museg Mamikonian, the president of the Russian Meat Union, industry consultant Samuel Lipman, and Marcus Rhodes, chairman of the Audit Committee, a former audit partner at Ernst & Young.

The piggeries are being sold by the family of Igor Babaev, the Cherkizovo chairman, whose has a number of relations working for the company, including his son Sergei Mikhailov, the group's chief executive. The family has a stake of about 65% in Cherkizovo.

"The management team regards this transaction as a significant milestone for the group," Mr Mikhailov said.

"This transaction represents the first acquisition of state-of-the-art, greenfield facilities of its kind in Russia."

Cherkizovo shares closed 1 cent higher at $15.51 in London.