ForFarmers / Boparan JV merger inquiry
| Case Outcome | Mergers - phase 2 cancellation |
| Subject Matter | Mergers |
| Date | 26 October 2022 |
| Court | Competition and Markets Authority (EW) |
| Decision Date | 26 October 2022 |
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Anticipated joint venture
between ForFarmers N.V. and
Boparan Private Office
Limited
SUMMARY OF PHASE 1 DECISION
1. On 30 June 2022, ForFarmers N.V., via ForFarmers UK Holdings Limited, and
Boparan Private Office Limited, via Amber REI Holdings Limited, entered into
a series of agreements to establish a joint venture with the purpose of merging
their respective businesses and operations in the production of animal
nutrition products, namely ForFarmers UK Limited (ForFarmers UK) and 2
Agriculture Limited (2Agriculture) (the Merger).
2. The Competition and Markets Authority (CMA) found that the Merger gives
rise to a realistic prospect of a substantial lessening of competition (SLC) as a
result of (i) horizontal unilateral effects in the supply of meat poultry feed in a
number of local areas in the UK; and (ii) as a result of vertical effects in the
downstream supply of chicken in the UK, as the Merger could lead to
foreclosure by the combined business of smaller poultry producers (including
growers) in the same local areas. The Parties have until 30 December 2022 to
offer an undertaking to the CMA that might be accepted by the CMA. If no
such undertaking is offered, then the CMA will refer the Merger pursuant to
sections 33(1) and 34ZA(2) of the Enterprise Act 2002 (the Act).
3. One of the parties to the joint venture, the ForFarmers group, is a European
manufacturer and supplier of animal feed based in the Netherlands, and listed
on Euronext Amsterdam. It is active in the UK through its indirectly wholly
owned subsidiary, ForFarmers UK. In this decision, ForFarmers refers to
ForFarmers N.V. and its subsidiaries.
4. The other party to the joint venture is a group of companies operated by, and
under the common ownership of, Ranjit Boparan and his family interests,
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