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In the summary of the case under investigation by the directorate general for competition of the European Commission, "ABP and Fane Valley strongly believe that the intensely competitive conditions on international meat markets mean that a much more effective and better-resourced business in Ireland is needed to compete on such international markets". They argue that ABP's proposed acquisition of a 50% controlling stake in Slaney from Fane Valley is the best way of achieving this.
According to the EU competition watchdog, the companies acknowledge that the deal will lead to concentration in the buying of cattle and sheep: "While ABP and the Slaney JV overlap on the island of Ireland for the purchase of bovine and ovine animals, the strategic emphasis of the proposed transaction is on the downstream markets for the sale of fresh beef and lamb/sheep meat which are primarily international export markets."
They argue that the proposal to bring the Slaney joint venture under the control of Larry Goodman-owned ABP "does not relate to Ireland (a market where the price paid for cattle is above the EU average)".
In a report commissioned by the IFA, a competition economist concluded last week that the deal would significantly lessen competition, especially for the best-quality cattle and regionally in the southeast.
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