ABP 'cleared' to acquire Scotbeef businesses after watchdog investigation

The Competition and Markets Authority had launched an investigation in July after concerns the merger could create 'substantial lessening of competition within the market'

clock • 2 min read
The Competition and Markets Authority confirmed it had approved the Irish processor’s takeover and merger of Scotbeef’s businesses at Longleys Farm in the Bridge of Allan and Glasgow after a three-month investigation
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The Competition and Markets Authority confirmed it had approved the Irish processor’s takeover and merger of Scotbeef’s businesses at Longleys Farm in the Bridge of Allan and Glasgow after a three-month investigation

A competition regulator has ‘cleared' Anglo Beef Processor's (ABP) acquisition of Scotbeef after concerns the deal could have ‘undermined competition in the red meat sector'.

The Competition and Markets Authority confirmed it had approved the Irish processor's takeover and merger of Scotbeef's businesses in the Bridge of Allan and Glasgow after a three-month investigation on Thursday (November 9).

See also: ABP announces takeover of two Scotbeef facilities

The competition watchdog had served an initial enforcement order under the Enterprise Act 2002 regarding an assets merger by ABP of Scotbeef's businesses after concerns the deal could lead to a ‘substantial lessening of competition within any market or markets in the United Kingdom for goods or services'.

ABP - which employs 13,000 staff across nine countries - announced it had agreed a deal to acquire Scotbeef's Stirlingshire abattoir and Glasgow meat packing plant in June.

Scotbeef's sites at East Kilbride, Annan, Heysham and Wolverhampton were not included in the deal.

See also: Remembrance Day special: World War II evacuee finds love for farming - 'the war was awful, but it has given me a life I would never have been exposed to without it'

Scotbeef chief executive Robbie Galloway said the takeover in June was the ‘right move for staff, supplies and for Scottish agriculture' in order to ‘secure the ongoing viability of slaughtering and packing facilities in Scotland'.

NFU Scotland's president Martin Kennedy said the acquisition had caused ‘significant concern' amongst its membership at the time of the announcement.

Neil Wilson, executive manager of the Institute of Auctioneers and Appraisers in Scotland, had been concerned about the ‘direction of travel' for Scottish beef and sheep farmers who had suffered ‘lack of competition in finishing'.

Scottish Beef Association chair Paul Ross said he was disappointed to see ‘more power going to one large Irish processor and reduced competition for cattle'.

You can find more details about the merger here.

See also: Three cows stolen from farm in Staffordshire

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