Faccenda Foods and Cargill tie-up approved by Competition and Markets Authority

The creation of a joint venture between poultry processor Faccenda Foods and the UK poultry arm of US meat giant Cargill is a step closer after competition watchdogs approved the deal.

The Competition and Markets Authority said today (7 December) it had completed its investigation into and cleared the proposed tie-up.

A joint venture between the two businesses would operate as a standalone business, with Cargill and Faccenda taking an equal shareholding. The company would employ 6,000 people across the UK, and have the capacity to process 223 million birds a year.

Faccenda today said it was “excited” the latest stage in the joint venture process had been achieved, in a move which would create “a leading UK food company focused on chicken, turkey and duck”.

In a statement, it added: “We are very pleased with the decision of the CMA and we currently anticipate that we will be operating as a standalone joint venture by end of January 2018.

“This joint venture will provide a solid platform for innovation and growth, bringing together two complementary businesses with talented people and strong reputations for high standards and great service.

“While the approval signifies the latest step in our integration journey, we will continue to operate and compete as independent businesses until day one of the joint venture. As such there will be no immediate change to how we serve our customers and partner with our suppliers and growers.”

The joint venture’s CEO will be Faccenda MD Andy Dawkins, while Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer of the as yet unnamed business.

Speaking to The Grocer in September, Dawkins said the deal would be “good for customers, growers and employees,” and a springboard for growth.

“There isn’t much crossover in our customer base,” he added. “This will give us a platform, both financially and in terms of our supply chain, to generate real value, resilience and efficiency - we are coming together for very positive reasons.”