A deal to buy ForFarmers’ UK feed mill operation by Ranjit Singh Boparan’s family office looks back on after a Competition & Markets Authority inquiry provisionally cleared the acquisition.
The CMA called in the plans – which would see the 2 Sisters Food Group owner acquire ForFarmers’ Burston and Radstock feed mill sites – last August, after the deal was announced in June.
Following a phase one investigation, the competition watchdog concluded in November that the purchase “could lead to a substantial lessening of competition in the supply of poultry feed to independent customers (such as farmers) in East Anglia”, where the Burston mill is located.
But in the wake of an in-depth phase two probe, the deal was given provisional clearance today by a CMA independent inquiry group.
It found that Boparan’s purchase of the 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 would “still have choice and the option to switch providers due to competition from other chicken feed providers in the market”, the CMA said.
“Therefore, the inquiry group does not believe the merger would lead to a substantial lessening of competition as a result,” it added.
“We’re reassured by the evidence which shows that farmers and chicken suppliers in the UK will continue to have options when it comes to choosing chicken feed providers, should the deal go ahead,” said Kirstin Baker, chair of the independent inquiry group.
“We’re now seeking feedback and views on our interim report before reaching a final decision.”
The independent inquiry group will now consult on its interim report and is inviting any feedback from interested parties by 11 March. A final decision will be made by the statutory deadline of 13 May.
Boparan Private Office declined to comment.
The deal follows an ultimately aborted attempt to merge the operations of 2Agriculture and ForFarmers UK in 2022, with the CMA concluding a planned joint venture raised “competition concerns” that could lead to “higher prices for poultry feed, lower-quality feed or worse quality of service”.
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