Ranjit Singh Boparan agreed to the acquisition of the ForFarmers-owned feed mills via his feed manufacturing firm 2Agriculture last year.
However, the deal attracted the attention of the CMA over concerns it could reduce competition within the feed market, as ForFarmers and 2Agriculture are both involved in the manufacture and supply of poultry feed in the UK.
A Phase 1 investigation concluded that the deal would provide Boparan with the “ability and incentive to harm rival poultry meat producers”, but Phase 2 investigators opted against trying to block the acquisition.
Explaining their rationale, the investigators said that while Boparan’s purchase of the 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, these suppliers will still have choice and the option to switch providers due to competition from other chicken feed providers in the market.
As a result, the group concluded that the merger would not lead to a substantial lessening of competition.
“Having assessed the evidence, we have provisionally found that Boparan’s purchase of ForFarmers’ Burston feed mill does not raise competition concerns,” said Kirstin Baker, chair of the independent inquiry group.
“We’re 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’re now seeking feedback and views on our interim report before reaching a final decision.”
The independent inquiry group will now consult on its interim report and is inviting any feedback from interested parties by 11 March 2025. A final decision will be made by the statutory deadline of 13 May 2025.
In 2022, the CMA investigated a separate joint venture by ForFarmers and Boparan which was subsequently abandoned after a Phase 1 investigation found that the merger gave rise to competition concerns in the local areas around four feed mills operated by the combined businesses.
