CMA clears poultry feed deal
An independent inquiry group has cleared Boparan’s deal to buy ForFarmers’ Burston and Radstock feed mills.
iStock
The Competition and Markets Authority’s (CMA) independent inquiry group has cleared Boparan’s proposed purchase of ForFarmers’ Burston and Radstock feed mill sites, following an in-depth Phase 2 investigation.
ForFarmers and Boparan (through 2Agriculture) both manufacture and supply chicken feed and other types of poultry feed in the UK.
The inquiry group’s investigation has found that Boparan’s purchase of ForFarmers’ Burston feed mill site could reduce the capacity available to manufacture chicken feed for chicken suppliers in the area around the mill in East Anglia. However, these suppliers will still have choice and the option to switch providers due to competition from other chicken feed providers in the market.
Having reviewed the evidence in the round, including the single response received from the parties in response to its interim report, the inquiry group does not believe the merger would lead to a substantial lessening of competition.
Kirstin Baker, chair of the independent inquiry group, said:
Having assessed the evidence and feedback to our interim report, which suggested that competition would not be harmed, we have given this acquisition clearance to proceed.
For more information, visit the Boparan / ForFarmers (Burston and Radstock mills) case page.
Notes to Editors:
-
ForFarmers is a European manufacturer and supplier of animal feed, based in the Netherlands. 2Agriculture, a subsidiary of Boparan, is one of the UK’s largest suppliers of poultry feed and supplies feed to Hook 2 Sisters, a company affiliated with Boparan, as well as farmers on the open market.
-
At the Phase 1 investigation stage, the CMA concluded that Boparan’s purchase of the Radstock feed mill site does not raise competition concerns and the sale of this mill has completed.
-
The CMA has a statutory duty to promote competition for the benefit of consumers and assesses each case on its individual merits. This includes a duty to investigate mergers that could raise competition concerns in the UK where it has jurisdiction to do so. In this case, the CMA has concluded that the CMA has jurisdiction to review this merger because a relevant merger situation has been created: each of Boparan and ForFarmers’ Burston and Radstock feed mills is an enterprise that will cease to be distinct as a result of the merger and the turnover test is met. More information on the CMA’s mergers jurisdiction and procedure can be read on its guidance page.
-
All media enquiries should be directed to the CMA press office by email on press@cma.gov.uk, or by phone on 020 3738 6460.