UK approves 2 Sisters’ acquisition of Vion UK’s poultry business

The UK’s Office of Fair Trading (OFT) has approved the acquisition of Vion UK’s poultry businesses by 2 Sisters Food, following an extensive review of the transaction.

The OFT, which fully reviewed the transaction, including the combination of the poultry businesses owned by both parties, stated that the deal did not create competition concerns.

Commenting on the development, 2 Sisters stated that with OFT approval the integration of both the red meat business and poultry business can now proceed.

The approval enables the company to move forward with plans to invest and improve the Vion business, which remains loss making, and further develop the Red Meat (beef and lamb) business, which offers growth potential, the company said.

The approval ends any uncertainty for the company’s employees, customers and farmers and other suppliers who are involved in Vion UK’s poultry business.

In April, Vion completed the sale of its red meat and poultry activities to the UK-based 2 Sisters Food.

The deal is expected to protect a key supply chain for British poultry and meat, providing support to farmers in England, Scotland and Wales.

The sale included 11 processing facilities – in Coupar Angus, Cambuslang and Portlethen in Scotland; Llangefni, Sandycroft and Merthyr in Wales; and Basildon, Witham, Eye, Victoria and Bodmin in England – which together have about 6,000 employees.

The sale of the businesses followed Vion’s announcement in November 2012 that it was selling its UK food operations, in order to focus on its core food activities in the Netherlands and Germany, and develop its global ingredients business.

As part of this plan, Vion completed the management buy-out of its UK pork business in January this year, securing about 4,000 jobs.

The red meat business operates from five facilities in the UK supplying beef and lamb to major retailers throughout the country, as well as to foodservice customers and export markets.

The poultry business owns hatcheries, feed mills, and packing and processing facilities, and offers fresh chicken products.

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Image: The OFT fully reviewed the transaction, including the combination of the poultry businesses owned by both parties, and noted that the deal did not create competition concerns. Photo courtesy of patrizio martorana.