First announced in September, the joint venture will combine Cargill’s fresh chicken business in the UK with Faccenda’s fresh chicken, turkey and duck business.
In October 2017, the European Commission granted a request to refer the assessment of the transaction’s effects on competition in the UK to the UK’s Competition and Markets Authority (CMA), which is still under way.
The European Commission found that the remainder of the transaction would raise no competition concerns because the companies’ market shares are small in the relevant areas outside the UK. The transaction was examined under the simplified merger review procedure.
Under the proposed joint venture, the as-yet-unnamed new company will have the “capability to respond to changing customer needs in the retail and foodservice sectors with a strategy for growth”.
Andy Dawkins, managing director for Faccenda Foods, will be appointed chief executive officer of the newly formed company while Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer of the new joint venture.
A decision by the UK’s CMA is expected in late December.