The Competition and Consumer Protection Commission (CCPC) has confirmed to Agriland that it has received two submissions in relation to the proposed sale of Kildare Chilling to Dawn Meats.
The commission is currently undertaking a review to determine whether the merger will or will not substantially lessen competition in the marketplace.
After being notified of the proposed acquisition on February 7, the CCPC launched a preliminary investigation, also known as a ‘Phase 1’ investigation. As part of this process the commission invited submissions from third parties.
A spokesperson for the CCPC said that by the deadline on Monday (February 20), the commission had received two submissions from third parties.
“Third party submissions are considered as part of the merger review and do not have any impact on the timings of the investigation,” the spokesperson added.
CCPC
As the merger review is still underway, the CCPC would not reveal the identities of the third parties who had made submissions.
However, the Irish Farmers’ Association (IFA) has confirmed to Agriland that it made a submission to the CCPC.
Last month, IFA president Tim Cullinan said that the commission has a critical role to play in determining how further consolidation of the cattle and sheep processing sector will impact on competition within the industry for farmers.
He said that the purchase of Kildare Chilling by Dawn Meats would remove another significant standalone meat plant in the country.
Meanwhile, the Irish Cattle and Sheep Farmers’ Association (ICSA) has told Agriland that rather than making a submission to the CCPC it has written to the European Commissioner for Competition, Margrethe Vestager about the proposed deal.
The letter asked the commissioner to examine whether the purchase is compatible with ensuring sufficient competition in the primary procurement markets for supplies of cattle and sheep.
The CCPC’s deadline to make a determination in a Phase 1 investigation is 30 working days after the notification of the proposed acquisition.
This deadline may be extended if the commission requires additional information from the parties involved in order to carry out its review.
Following the conclusion of the preliminary investigation, if the CCPC determines that further examination is required in order to establish if the proposed transaction could lead to a substantial lessening of competition in the state, then a full investigation, known as a ‘Phase 2’ investigation is opened.
Kildare Chilling
Kildare Chilling is one of the main sheep processors in the country, accounting for around 20% of the national sheep throughput.
The slaughter halls at Kildare Chilling Co. have the capacity to kill 120,000 cattle and 500,000 lambs per annum.
In its merger notification, the CCPC notes that Kildare Chilling “is active in slaughtering, processing (deboning) cattle and sheep and selling the resulting fresh meat cuts and by-products”.
The company operates from a single site in Kildare town and sells its products under the Kildara and Heritage Town brands.
Dawn Meats operates seven sites across the country with a particular focus on beef processing. It also has production and sales operations in the UK and in Europe.
The company has a variety of brands including: Black Angus; Red Hereford; Charolais Gold; Nature’s Meadow; West Cork Beef; Dawn Chef; and The Premium Butcher.