A decision on the ABP proposal to acquire the Allen shares in Slaney is due this Friday, having been notified to the EU Competition authorities (DG Comp) on 2 September. ABP and the other shareholder in Slaney, Northern Ireland-based farmer-owned co-op Fane Valley, have been pursuing this venture since the end of last year.
It has met widespread farmer opposition, with the IFA commissioning a comprehensive report on how the proposed deal would reduce the competition for cattle, particularly steers and heifers in the south Leinster region.
Fane Valley and ABP disagree and say that their proposed joint venture would give Slaney enhanced access to markets for the beef and lamb produced across their beef and lamb sites.
Much work is done behind the scenes before a proposed merger to takeover is formally presented to DG Comp and 90% are typically approved at this stage.
However, if there are issues that DG Comp consider requiring further investigation, they have the facility of initiating a deeper three-month investigation before coming to a conclusion.
Given the hostility from farmers in Ireland to this proposed deal, it wouldn’t be surprising if this was one of the occasions when DG Comp considered further investigation was merited.
Thoroughness
Speaking in Strasbourg this week, MEP Mairead McGuinness said she was “reassured about the thoroughness of the investigation”.
“The proposed acquisition has given rise to much concern on the part of primary beef and lamb producers about negative consequences arising from the diminution of competition in the sector.
“The Commissioner is paying very close attention to the recent report commissioned by the IFA on the issue,” McGuinness said.
“At this stage it looks like the Commission is doing everything to ensure that it is acquainted with the nuances of the Irish market and that its decision on Friday will be reached following full and careful consideration of the competition issues at play,” she said.
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Full coverage: ABP-Slaney deal
A decision on the ABP proposal to acquire the Allen shares in Slaney is due this Friday, having been notified to the EU Competition authorities (DG Comp) on 2 September. ABP and the other shareholder in Slaney, Northern Ireland-based farmer-owned co-op Fane Valley, have been pursuing this venture since the end of last year.
It has met widespread farmer opposition, with the IFA commissioning a comprehensive report on how the proposed deal would reduce the competition for cattle, particularly steers and heifers in the south Leinster region.
Fane Valley and ABP disagree and say that their proposed joint venture would give Slaney enhanced access to markets for the beef and lamb produced across their beef and lamb sites.
Much work is done behind the scenes before a proposed merger to takeover is formally presented to DG Comp and 90% are typically approved at this stage.
However, if there are issues that DG Comp consider requiring further investigation, they have the facility of initiating a deeper three-month investigation before coming to a conclusion.
Given the hostility from farmers in Ireland to this proposed deal, it wouldn’t be surprising if this was one of the occasions when DG Comp considered further investigation was merited.
Thoroughness
Speaking in Strasbourg this week, MEP Mairead McGuinness said she was “reassured about the thoroughness of the investigation”.
“The proposed acquisition has given rise to much concern on the part of primary beef and lamb producers about negative consequences arising from the diminution of competition in the sector.
“The Commissioner is paying very close attention to the recent report commissioned by the IFA on the issue,” McGuinness said.
“At this stage it looks like the Commission is doing everything to ensure that it is acquainted with the nuances of the Irish market and that its decision on Friday will be reached following full and careful consideration of the competition issues at play,” she said.
Read more
Full coverage: ABP-Slaney deal
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