Poultry deal referred for further investigation by competition watchdog

The proposed merger of ForFarmers and Boparan will be subject to another investigation by the Competition and Markets Authority (CMA) as it rejects the JVs proposals to address competition concerns.

ForFarmers and Boparan (owner of Birmingham-based 2 Sisters Food Group), through its subsidiary 2Agriculture, both manufacture and supply chicken and other types of poultry feed in the UK. The firms are planning to combine their animal feed milling operations in a joint venture. Between them, the companies operate 19 mills across the UK.

On 21 December 2022, the CMA decided that it was or may be the case that the merger raises competition concerns in areas across East Anglia, north-western England and North Wales where it could lead to higher prices for poultry feed, lower quality feed or worse quality of service.

The CMA said it was concerned that the combined business would not face sufficient competition after the merger and that the JV could unfairly favour Boparan’s chicken farming and processing businesses, resulting in less choice for smaller chicken farmers and processors, who might rely on ForFarmers and Boparan for chicken feed.

ForFarmers and Boparan submitted proposals to address the CMA’s concerns on 30 December 2022.

The CMA said it does not believe that the proposal is suitable and will now refer the merger to conduct a phase 2 investigation under Enterprise and Regulatory Reform Act 2013.

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