The UK Competition and Markets Authority (CMA) has approved the merger between Cargill’s fresh chicken business in the country and meat producer Faccenda Foods.
Initially announced in September, the merger will create a standalone business operating across multiple agricultural and operational centres, ‘with broad capabilities’ across the entire food supply chain.
Following CMA clearance, the joint venture is expected to be in operation by January 2018.
It will be led by Faccenda Foods managing director Andy Dawkins, with Chris Hall – currently fresh chicken director for Cargill Meats Europe – becoming chief commercial officer.
Faccenda, which supplies meat to the UK’s retail and foodservice sectors, processes more than 100 million chickens and turkeys a year with turnover of £500 million.
In a statement, Faccenda Foods said: “We are excited to announce that we have received approval from the UK Competition and Markets Authority to create a leading UK food company focused on chicken, turkey and duck. Faccenda Foods will join Cargill’s UK fresh chicken business form the standalone joint venture.”
It added: “This joint venture will provide a solid platform for innovation and growth, bringing together two complementary businesses with talented people and strong reputations for high standards and great service.
“While the approval signifies the latest step in our integration journey, we will continue to operate and compete as independent businesses until day one of the joint venture. As such there will be no immediate change to how we serve our customers and partner with our suppliers and growers.”
Separate to the joint venture, Cargill’s UK business will continue to process and sell cooked poultry products from its site in Wolverhampton, as well as operating its poultry import, trading and distribution business.
© FoodBev Media Ltd 2024