Deal nears for 2Agriculture to acquire ForFarmers feed mills

The Competitions and Markets Authority (CMA) has provisionally approved the anticipated acquisition of ForFarmers Burston and Radstock feed mills by poultry feed manufacturer 2Agriculture.

2Agriculture already operates five UK feed mills and is a subsidiary of Boparan, which also owns major poultry processor 2 Sisters Food Group.

The CMA has been carrying out an in-depth merger inquiry due to the market share of the businesses involved and has provisionally ruled that the acquisition would not lead to a substantial lessening of competition in the supply of poultry feed.

See also: ForFarmers and 2Agriculture merger faces in-depth investigation

During the first stage of the investigation, the CMA concluded that the purchase of the Radstock feed mill site could be completed, and that the phase-two investigation would focus on the Burston feed mill.

Its inquiry found that while the purchase of the mills could reduce the capacity available to manufacture feed in East Anglia, suppliers would still be able to switch providers and therefore it would not be an issue.

Kirstin Baker, chairwoman of the CMA’s independent inquiry group, said: “Having assessed the evidence, we have provisionally found that Boparan’s purchase of ForFarmers’ Burston feed mill does not raise competition concerns.

“We’re reassured by the evidence which shows that farmers and chicken suppliers in the UK will continue to have options when it comes to choosing chicken feed providers, should the deal go ahead.

“We’re now seeking feedback and views on our interim report before reaching a final decision.”

A final report is due to be published in April with a statutory deadline of 13 May.