18.02.2025 | UK competition authority
The Competition and Markets Authority (CMA) in the UK has provisionally cleared Boparan's proposed acquisition of ForFarmers' Burston and Radstock feed mill sites. This decision follows an extensive Phase 2 investigation by the CMA's independent inquiry group.
Boparan and ForFarmers are both key players in the manufacture and supply of poultry feed in the UK. The inquiry group assessed the potential impact of Boparan's purchase of the Burston feed mill site, noting that while it could reduce the manufacturing capacity for chicken feed in East Anglia, there remains sufficient competition in the market. Chicken suppliers in the area will still have options to switch providers, mitigating concerns about reduced competition.
Kirstin Baker, chair of the inquiry group, expressed confidence in the findings, stating that the evidence suggests farmers and chicken suppliers will continue to have choices in their feed providers if the merger proceeds. The CMA is now seeking feedback on its interim report from interested parties, with a deadline set for March 11, 2025. A final decision is expected by May 13, 2025.
ForFarmers, based in the Netherlands, is a significant European manufacturer of animal feed, while 2Agriculture, a subsidiary of Boparan, is one of the largest poultry feed suppliers in the UK. The CMA had previously determined that Boparan's acquisition of the Radstock feed mill did not raise competition concerns, and that sale has already been completed.
The CMA is mandated to promote competition for consumer benefit and evaluates each merger case on its own merits. In this instance, the CMA confirmed its jurisdiction to review the merger due to the creation of a relevant merger situation, as both feed mills will cease to be distinct entities post-merger.
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