European Commission approves Cargill, Faccenda JV
Nov. 27, 2017
by MEAT+POULTRY Staff
The UK's Competition and Markets Authority will review the transaction.
BRUSSELS – The European Commission approved a joint venture between Cargill and Faccenda Foods leaving a review by the Competition and Markets Authority in the United Kingdom as the next hurdle.
The Commission found that “…the remainder of the transaction would raise no competition concerns because the companies’ market shares are small in the relevant areas outside the UK. The transaction was examined under the simplified merger review procedure.”
Cargill and Faccenda Foods plan to create a UK food company focused on chicken, turkey and duck. The company will be a standalone business, where both companies will hold equal shares. Cargill will continue to process and sell cooked poultry products in Balliol, Wolverhampton, in addition to the company’s poultry import, trading and distribution business. Cargill will also continue to operate its European poultry businesses in France, Russia and the Netherlands. Faccenda will keep its share in Dartmouth Foods.
In October, the EC granted a request to refer the impact of the joint venture in the UK to Competition and Markets Authority. The comment period related to the transaction closed Nov. 1, and CMA plans to issue a decision by Dec. 22.
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. Faccenda Foods employs around 3,600 people and processes about 2 million chickens, 3.5 million turkeys and 5.5 million ducks per year.