UK competition agency to review Cargill, Faccenda Foods JV
Oct. 20, 2017
by MEAT+POULTRY Staff
The proposed venture is advancing through the UK regulatory process.
LONDON – The Competition and Markets Authority in the UK is reviewing the proposed joint venture between Cargill and Faccenda Foods.
The companies announced the plan in September. The comment period related to the transaction will close Nov. 1. A decision by the CMA is scheduled for Dec. 22.
The CMA “…is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” according to a notice posted on the CMA website. This review is part of the normal regulatory process in Europe.
Cargill and Faccenda Foods plan to establish a joint venture to create a UK food company focused on chicken, turkey and duck. The venture will be a standalone business, where both companies will hold equal shares.
Cargill’s fresh chicken business in the UK consists of laying farms, breeder farms, hatcheries, a feed mill, grow-out facilities and three poultry processing facilities employing 2,500 people. Cargill processes around 2.1 million birds per week in the UK.
Faccenda’s poultry business employs around 3,600 people and processes about 2 million chickens, 3.5 million turkeys and 5.5 million ducks per year.