Noble Foods’ integration of Manton’s egg factories frozen

At this stage, the CMA is merely requesting further information, having inherited the case from the Competition Commission (CC), which was abolished on April 1. The next step would be to launch an official review of the deal’s implications, if necessary.

“The parties are aware we are looking at it, but we haven’t started the 40-day review,”​ a CMA spokeswoman told FoodManufacture.co.uk. “We have put an interim order in place to stop further integration of the two companies.” ​This had been done to simplify the CMA’s initial review, she said.

Detrimental market effects​

After a 40-day review is launched, the CMA has to decide whether or not there is sufficient evidence of detrimental market effects to proceed with a formal investigation.

Noble Foods, the UK’s largest egg packer, clinched an agreement in February to take over the two egg factories in Gainsborough and Harrogate from egg processor Manton’s.

At the time, local press reports suggested Noble Foods was proposing to shift current liquid egg production from Bilsthorpe to the acquired facilities during 2014 as part of the transaction. Such a move would involve the closure of the Bilsthorpe plant, threatening more than 100 jobs. However, the CMA’s actions could at least delay this process.

Market dominance​

Noble Foods itself was formed by the merger of Stonegate Farmers and Deans Food Group. However, in April 2007, the Competition Commission required Noble Foods to sell Clifford Kent Holdings, the parent company of Stonegate, to satisfy concerns its subsequent market dominance would lead to higher retail prices for eggs.

“​We can confirm that Noble is currently in discussion with the Competition and Markets Authority (formed from the merger of the OFT ​[Office of Fair Trading] and the Competition Commission) in respect of our acquisition of certain assets of the Manton egg processing business,” ​said a Noble Foods spokeswoman.

“​​We are of course complying fully with all regulations as required. While it would be inappropriate to comment any further while discussions are ongoing, we would like to reassure our customers that it is business as usual at both Bilsthorpe and Harrogate egg processing sites.”​

Axing jobs​

At the end of January, in a separate move, the company confirmed it was considering axing jobs as it relocated shell egg packing facilities in Scotland and Lincolnshire to a newly built Oxfordshire facility​.

Aside from handling shell eggs, Noble Foods also processes egg products, owns premium desserts businesses Gü Puds and Didier’s Patisserie and has poultry processing and feed milling interests. It also owns the Happy Egg brand.