1.2-Sisters-and-Dunbia-stay-quiet-on-red-meat-deal_strict_xxl

A joint venture deal between 2 Sisters and Dunbia could face scrutiny from competition authorities, as well as raise concerns from supermarkets, according to Shore Capital analyst Clive Black.

Both companies still remain tight lipped  about the prospect of a potential joint venture focusing on their two red meat businesses.   

Shore Capital analyst Clive Black told Foodmanufacture.co.uk: “Dunbia has a tremendous capability in beef and lamb and has a much smaller pig operation. ​

“2 Sisters is very strong in poultry with a growing presence in beef and lamb so potentially the piece of the jigsaw could sit very well.”​

However, he raised concern about the impact that any deal would have with the authorities and with competition in the market.

 “What will the UK Competition and Markets Authority (CMA) make of it?  It lives in a totally different planet and parallel universe, which is virtually impossible to predict​,” he said.

There would also be an issue with retailers who use the suppliers, he predicted.

“The conundrum is what retailers think of it, especially the UK supermarkets, as 2 Sisters is already a significant player in the protein market,”​ he warned.