FDBusiness.com

European Commission Clears Joint Acquisition of Slaney Foods JV and Slaney Proteins by ABP Group and Fane Valley

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

European Commission Clears Joint Acquisition of Slaney Foods JV and Slaney Proteins by ABP Group and Fane Valley

European Commission Clears Joint Acquisition of Slaney Foods JV and Slaney Proteins by ABP Group and Fane Valley
October 11
10:00 2016

The European Commission has cleared unconditionally, after an investigation under the EU Merger Regulation, the proposed acquisition of joint control of Slaney Foods JV and Slaney Proteins by Irish and international meat processor ABP Group and Northern Ireland-based farmer-owned agri-food company Fane Valley. Slaney Foods JV has two divisions – Slaney Food International comprising its cattle slaughtering and beef meat processing business located in Ireland and Irish Country Meats encompassing its sheep/lambs slaughtering activities and mutton and lamb business in Ireland and Belgium. Slaney Foods JV operates three meat processing plants in Ireland.

Slaney Proteins operates a rendering plant for processing of animal by-products generated by the activities of Slaney Foods JV in Ireland.

abpfoodgroupbeefAll three companies – ABP, Fane Valley and Slaney – are active in the purchase and slaughter of live cattle, sheep and lambs, as well as de-boning and processing of meat. Their activities cover also the marketing of fresh beef, lamb and mutton to meat retailers (including supermarkets) and industrial meat processors. The Commission concluded that the proposed acquisition would not adversely impact effective competition in the EU’s Single Market as regards any of these markets.

The transaction was notified on 2 September 2016.

The Commission’s investigation focused in particular on the impact of the proposed transaction on competition in the markets where the activities of the parties overlap and which constitute affected markets in terms of EU merger rules:

* purchasing of live cattle for slaughter in Ireland by ABP and Slaney Foods JV; purchasing of live sheep and lambs for slaughter in an area encompassing Ireland and Northern Ireland by ABP, Slaney Foods JV and Fane Valley;

* sale of fresh beef, lamb and mutton in Ireland, including to industrial processors; sale of fresh lamb and mutton meat in Belgium, including to supermarkets by ABP and Slaney Foods JV;

* collection of animal by-products, generated by the slaughtering activities, in Ireland by ABP and Slaney Foods JV.

The Commission concluded that the transaction would not raise competition concerns in relation to any of these markets.

ABPFoodGroupAs regards the potential impact on markets for the purchasing of live animals (cattle, sheep and lambs), the Commission assessed any potential increase of the slaughterhouses’ buyer power to the detriment of farmers, which could affect in particular local farmers’ communities. The Commission found that farmers in Ireland tend to sell within a rather broad geographic radius and that they are able to switch slaughterhouses if they can get better prices for their animals. Various slaughterhouses with spare capacity will continue to operate in Ireland, including in the southeast area, where the Slaney Foods JV cattle slaughtering facility is located. The Commission thus found that farmers will continue to have sufficient alternative buyers for their animals after the merger.

The Commission also assessed the potential impact on competition in the downstream markets relating to the sale of fresh meat. The investigation found that a number of strong competitors will remain active after the merger. The Commission therefore concluded that the parties will not be able to increase prices or impose detrimental conditions on retailers and industrial meat processors and ultimately on consumers.

As regards the collection of animal by-products generated by slaughtering activities in Ireland, the Commission found that the volumes of animal by-products that competing renderers currently collect from the Slaney Foods JV/Fane Valley are modest. The investigation also showed that, after the merger, rendering plants would continue to have sufficient access to animal by-products. Finally, the Commission found that the transaction was unlikely to have a negative impact on slaughterhouses in relation to their disposal of animal by-products.

Trevor Lockhart, chief executive of Fane Valley Group.

Trevor Lockhart, chief executive of Fane Valley Group.

Trevor Lockhart, chief executive of Fane Valley Group, comments: “This is a positive outcome for the respective businesses and a step in the right direction for the red meat industry in Ireland. It is imperative for the long term sustainability of the sector that we develop highly effective business models that maximise the opportunities to sell quality beef and lamb from Ireland in the international marketplace. That has been the combined goal of ABP and Fane Valley from the very outset.”

Frank Stephenson, chief executive of ABP Food Group, says: “The joint venture will enable both ABP and Fane Valley, through the Slaney Foods JV, to grow our respective businesses by bringing a stronger product offering to international markets where we compete with much larger global players. Today’s decision, which follows a thorough evaluation by DG Competition at the EU Commission, will allow the parties to enhance an already highly competitive beef processing sector in Ireland and to grow their main export markets through the JV. This transaction has always been about securing better international markets for meat products and developing an industry that needs to evolve to remain relevant and compete effectively on the global stage.”

ABP Food Group operates a number of meat processing plants in Ireland, the UK and continental Europe and is an international supplier of fresh beef to the European and global markets. ABP Group is also active in pet food, renewable energy and proteins. ABP operates eight meat processing plants in Ireland and Northern Ireland.

Fane Valley Co-operative Society is a farmer owned co-operative and is active in meat processing, porridge oats and breakfast cereals, feeds, and owns a network of retail shops for farm requisites. Fane Valley operates one slaughterhouse in Northern Ireland.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
  • October 1, 2018Poznan International Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements