A Phase 1 inquiry into the proposed deal was launched on 11 September 2024 over fears that the acquisition of the feed mills located in Burston and Radstock by 2 Sisters owner Ranjit Singh Boparan (via his feed manufacturing firm 2Agriculture) could lessen competition in the supply of poultry feed to independent customers in East Anglia.
On 6 November the CMA announced its intention to progress to a Phase 2 inquiry after it determined that completion of the acquisition might lead to farmers in East Anglia paying higher prices to feed their poultry.
The parties were given seven days to address these concerns, but it now appears that no satisfactory explanation was put forward.
As a result, the CMA has announced the official launch of a Phase 2 investigation, with a statutory decision deadline of 6 May made public.
CMA concerned costs could be 'passed down to shoppers'
Explaining the decision to escalate the investigation earlier this month, CMA executive director of mergers Joel Bamford said: “We’re concerned that this deal could worsen competition between poultry feed suppliers in East Anglia – leading to higher costs for farmers which could then be passed down to shoppers.”
New guidance on Phase 2 investigations was released by the CMA earlier this year, with the process led by an independent panel of experts called the inquiry group.
Following the conclusion of this stage the CMA will publish the full text explaining its decision, with the body possessing the power to block a merger if it concludes that the deal will result in a lessening of competition, although its decision can be appealed.
Previous history
A separate proposed transaction between ForFarmers and Boparan Private Office was abandoned last year after the CMA determined that the merger would likely result in higher feed prices and a potential reduction in quality.
A ForFarmers UK statement from February 2023 read: “The parties have taken into consideration, among other things, the current impact on their respective businesses, the duration and costs involved and the impact this process has on both employees and farmers.”
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