The European Commission (EC) has approved the joint acquisition of Slaney Foods JV and Slaney Proteins by ABP Group and Fane Valley.
The proposal for acquisition of the stake has been cleared unconditionally by Europe’s competition authority, noted ABP Food Group.
Once the stake acquisition process is completed, the combined company will own about a quarter of the meat processing market in Ireland. The commission had noted that the acquisition will not raise any concerns for competition in the three markets it operates.
According to the commission, even after the merger, there would still be a number of strong competitors operating in the market. Hence, the merged companies would not involve in increasing prices or impose detrimental conditions on retailers.
ABP Food Group CEO Frank Stephenson said: “The joint venture will enable both ABP and Fane Valley, through the Slaney Foods joint venture, 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 the DG for 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.”
The commission also noted that purchase of live animals including cattle, sheep and lambs would not suffer a major impact due to the acquisition and that the farmers in Ireland will be still left with plenty of choices.
Fane Valley Group CEO Trevor Lockhart said: “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.”
