Concatenation is supported in GCC and Clang. Xcode isn't a compiler; if you're posting errors like this, check what version of GCC, LLVM-GCC or Clang ("LLVM compiler") you're using because their behavior can differ.
You're trying to make = part of an identifier (i.e., create a variable called foobar=) which I don't think is what you want.
Try #define FOO(_var) int foo##_var = 1 instead.
Incidentally, Clang gives a somewhat better error message:
foo.c:4:5: error: pasting formed 'foobar=', an invalid preprocessing token
FOO(bar);
^
foo.c:1:32: note: instantiated from:
#define FOO(_var) int foo##_var## = 1
^