FDBusiness.com

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

 Breaking News
  • Deliveroo to Make All Staff Shareholders Deliveroo, the leading food delivery company, has announced that it is to make all of its employees shareholders in the company and give them equity. The move will mean all permanent staff, present and future, will be given share options in the company. The move will be worth nearly £10 million for the majority of the [...]...
  • China’s Yoghurt and Cheese Markets Experience Steady High Value Retail Sales Growth While the overall dairy market in China is growing stably, the various categories are experiencing differing performance. New research from Mintel reveals that yoghurt and cheese are the market’s winning categories in recent years with yoghurt maintaining an annual retail sales growth of over 20% since 2014. Meanwhile, the cheese category has seen a growth [...]...
  • Tetra Pak® Extrusion Wheel Produces Stick Ice Cream Products With Large Inclusions at Highest Capacity Tetra Pak has launched an Extrusion Wheel that produces stick ice cream products with large-sized inclusions, such as whole nuts, real fruit segments, or cookie dough chunks at highest capacity on the market. The Tetra Pak® Extrusion Wheel, which can be added to existing lines, uses an innovative vertical rotating design that moves continuously at a [...]...
  • New Machine is UK First Rigid box specialist the Pollard Group has installed a bespoke magnet and ribbon loop inserting machine, the first of its kind in the UK. The £150,000 investment at Pollard’s factory in Enderby, Leicester is operating in conjunction with the company’s recently-installed Kolbus DA260 Casemaker to form a highly automated book jacket production department. In particular [...]...
  • Hi Europe & Ni Celebrates 10th Edition With Inspiring Events Programme Europe’s leading health, natural and nutrition show, Hi Europe & Ni, is celebrating its 10th edition with a move to a larger hall at Messe Frankfurt this year. From 27-29 November 2018, visitors will be able to access all of the show’s many features and live events under one roof. In addition, the Healthy Finished Products Expo [...]...

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

  • May 21, 2018London Int'l Wine Fair
  • May 22, 2018European Coffee Expo
  • June 1, 2018Gluten Free Expo Slovakia
  • June 3, 2018Vinoble
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements