Portuguese juice manufacturer Compal is poised to set up a joint venture with the Osborne Group in Spain.

The Portuguese juice manufacturer said late last week that it would team up with the Spanish firm, which will distribute Compal's juices, soft drinks and waters through the Osborne network.

The Spanish group has around 480 exclusive agents and sub-distributors and covers about 94% of the Spanish on- and off-trade.

The venture will be split 50-50 between the two companies and will have an initial working capital of EUR3m (US$3.96m). The venture plans to spend EUR30m in the next four years, specifically on marketing and the prevailing distribution channels.

Compal "will be responsible for the expansion of the portfolio of products" while "Osborne Group will take charge of the extension and control of distribution channels", the two companies said.

Final agreement on the deal will be signed this week, the Compal board added.

Compal is 80%-controlled by state-owned bank CGD and 20% held by soft drinks firm Sumolis.