ForFarmers and 2Agriculture merger faces investigation
© Tim Scrivener The potential acquisition of two ForFarmers feed mills by poultry feed manufacturer 2Agriculture will face an in-depth investigation by the Competitions and Markets Authority (CMA).
The CMA has confirmed plans to carry out a phase 2 investigation after determining that, based on current evidence, the merger may be expected to result in a substantial lessening of competition.
The acquisition of Burston and Radstock feed mills by 2Agriculture, which forms part of the Boparan Group, will be put on hold while the investigation is carried out.
See also: ForFarmers and 2Agriculture merger investigated by CMA
A phase 1 investigation by the CMA took place between August and November and found concerns that it had potential to “substantially harm smaller, independent chicken growers and processors.”
Joel Bamford, executive director of mergers at the CMA, 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.”
This is not the first time that a deal between the two parties has been tabled.
The CMA previously investigated a joint venture between ForFarmers and Boparan in 2022, however, the deal was abandoned early the following year.
A final report is due to be published by the CMA in April next year with a statutory deadline for the investigation of 13 May 2025.