The Competition and Markets Authority's (CMA) independent inquiry group has provisionally cleared Boparan's proposed purchase of ForFarmers' Burston and Radstock feed mill sites, following an in-depth Phase 2 investigation.
ForFarmers and Boparan, through 2Agriculture, both manufacture and supply chicken feed and other types of poultry feed in the UK.
CMA said the inquiry group's investigation had provisionally found that Boparan's purchase of ForFarmers' Burston feed mill site could reduce the capacity available to manufacture chicken feed for chicken suppliers in the area around the mill in East Anglia.
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However, it said these suppliers will still have choice and the option to switch providers due to competition from other chicken feed providers in the market.
Poultry feed
Therefore, the inquiry group did not believe the merger would lead to a substantial lessening of competition as a result.
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Kirstin Baker, chair of the independent inquiry group, said: "Having assessed the evidence, we have provisionally found that Boparan's purchase of ForFarmers' Burston feed mill does not raise competition concerns. We are reassured by the evidence which shows that farmers and chicken suppliers in the UK will continue to have options when it comes to choosing chicken feed providers, should the deal go ahead.
"We are now seeking feedback and views on our interim report before reaching a final decision."
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The independent inquiry group will now consult on its interim report and is inviting any feedback from interested parties by March 11. A final decision will be made by the statutory deadline of May 13.
