Food sector’s competition concerns over ABP-Slaney merger
The Competition and Consumer Protection Commission has yet to receive notification of the proposed deal.
However, ABP has confirmed it will notify the authority in due course.
An ABP spokesperson said it has always intended to submit a full notice to the Commission, as was signaled in the joint statement the companies issued when they first unveiled their planned merger.
ABP Food Group stated: “Last Thursday week, ABP Food Group and Linden Food Group announced their intention to enter into a 50:50 joint venture in respect of Slaney Foods.
"The details are being worked through and once agreed will be forwarded by both parties to the relevant competition authority at the appropriate time.”
Ireland East MEP Mairead McGuinness said the deal, which is expected to give ABP control of a quarter of all Irish beef processing, will require notification.
The Commission must be notified of any deal which results in turnover exceeding €50m for the two parties combined, and where the turnover of each party exceeds €3m.
“Given the size of the transaction I would anticipate that notification will be a legal requirement,” said Ms McGuinness.
“The Commission will then be obliged to determine if the acquisition will or will not substantially lessen competition.”
McGuinness is awaiting a response to letters she has sent to the EU Competition and Agriculture Commissioners, Vestager and Hogan, on this issue.
Meanwhile, IFA national livestock chairman, Henry Burns, said that Irish cattle and sheep farmers have very serious concerns on competition and the concentration of the kill with the proposed investment.
He said the Commission needs to undertake a full investigation and provide the necessary guarantees and undertakings to farmers around competition and market concentration.
“Competition in the beef and lamb trade is always a contentious issue between farmers and factories.
"Farmers are rightly concerned with the over dominance of a number of major players at both processing and retail level,” said Mr Burns.
The ICSA raised a series of specific concerns, notably the impact on cattle prices that could arrive out of the reduction in the number of independent outlets competing for cattle.
It signalled reduced competition for niche Hereford and Angus beef, and added that the deal would see 40% of all sheepmeat now being processed by one group.
The Commission stated that, where a merger transaction is notifiable, there is no deadline by which the firms involved are required to submit their notification.
It added, however, that any deal which falls into its remit cannot be implemented unless the Commission makes a determination clearing the transaction.
