Boparan’s acquisition of ForFarmers feed mills receives provisional approval

UK – The United Kingdom’s Competition and Markets Authority (CMA) has provisionally cleared Boparan’s proposed acquisition of ForFarmers’ Burston and Radstock feed mills. 

This decision comes after an extensive review of the potential competitive implications of the deal.

Boparan Holdings, the parent company of 2 Sisters Food Group—the UK’s largest poultry company—first proposed the acquisition of the two agricultural feed mills from ForFarmers in September 2023. 

However, the CMA expressed concerns, particularly regarding the Burston site, and launched an investigation into how the deal might affect competition in East Anglia.

A Phase 1 inquiry suggested that Boparan’s expanded footprint in the poultry feed supply sector could harm market competition, leading to increased feed prices for local poultry producers. This, in turn, could result in higher costs for consumers. 

The regulator feared that Boparan’s subsidiary, 2Agriculture—already a dominant player in poultry feed supply across Scotland, East Anglia, and North Wales—could leverage the acquisition to disadvantage rival producers by manipulating costs or reducing service quality for independent farmers.

Joel Bamford, CMA’s executive director of mergers, commented on the initial findings, stating, “We’re concerned that this deal could worsen competition between poultry feed suppliers in East Anglia—leading to higher costs for farmers, which could then be passed down to shoppers.”

CMA’s provisional clearance

Despite these concerns, the CMA’s independent inquiry group recently determined that the merger does not pose significant risks to market competition. 

According to the inquiry’s findings, alternative poultry feed suppliers remain available to farmers, ensuring continued market choices and mitigating the potential for monopolistic control.

“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 that farmers and chicken suppliers in the U.K. will continue to have options when it comes to choosing chicken feed providers, should the deal go ahead.”

The CMA is now inviting feedback from stakeholders regarding its interim report. Interested parties have until March 11 to submit their views, with a final ruling expected by May 13.

Previous regulatory scrutiny

This is not the first time Boparan and ForFarmers have come under regulatory scrutiny. In 2022, the CMA investigated a joint venture between the two companies, identifying significant competition concerns around four feed mills operated by the combined entity. 

Attempts to address these concerns through proposed remedies were deemed insufficient, leading the CMA to escalate the matter to a Phase 2 investigation. Ultimately, the companies abandoned the deal in early 2023.

If Boparan’s acquisition is ultimately approved, the company will strengthen its position in the UK’s poultry feed market. 

While some industry stakeholders initially feared anti-competitive consequences, the CMA’s provisional ruling suggests that market dynamics will remain balanced, with alternative suppliers continuing to operate.

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