Loue plans to buy Maitre Coq in poultry merger

* LDC in exclusive talks with Arrive * LDC says merger of great strategic interest

PARIS, April 23 (Reuters) - French poultry group LDC (LDCP.PA: Quote, Profile, Research) said on Thursday it had started exclusive merger talks with Arrive group, in a further shake-up of the industry hit by high feed prices and price pressure from retailers.

LDC, with brands such as Loue and Le Gaulois well-represented in French supermarkets, is one of the largest poultry groups in France, competing with the European leader in certified fresh poultry, Duc (DUCP.PA: Quote, Profile, Research).

It said the deal was subject to due diligence.

Arrive counts Maitre Coq among its brands, which is a leading brand of ready-to-cook chickens in microwave bags.

Arrive has sales of 561 million euros ($730.6 million), of which 75 percent comes from poultry and 25 percent from animal feed, and employs 2,835 people. LDC has sales of some two billion euros, employs 12,000 and is one of Europe's leading poultry groups.

LDC said the merger would be of great strategic interest to the two firms. In January, LDC bought sandwich specialist Entracte

LDC has a market capitalisation of 522 million euros and gained 12 percent this year. The Lambert family has a 41 percent stake and the Chancereul family owns 18.5 percent.

Arrive was founded in 1950 by Joseph and Marce Arrive