British merger ForFarmers ricocheted by watchdog

The planned merger between the British branch of ForFarmers and 2Agriculture has been cancelled. The British regulator CMA struck at the end of December on the deal, because there are fears that the merged company will gain too much market power. Both parties have decided not to further investigate the deal and are pulling the plug. 

The failure of the deal, which was announced last summer, can be seen as a major setback. There was a lot of enthusiasm within ForFarmers about this the joint venture. Analysts were also enthusiastic and saw great potential for the future merger company, which would give ForFarmers access to the promising poultry feed markets in the UK. However, the British regulator saw bears on the road and foresaw that the merged company would gain too much market power.

At the end of December, both parties proposed adjustments, but the cartel service did not agree. This meant that phase 2 of the research would start, but ForFarmers and 2Agriculture have decided against that. The duration of the investigation and the associated costs are such that it has been decided to do so.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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