The Competition and Consumer Protection Commission (CCPC) has sought further information on the proposed sale of Kildare Chilling to Dawn Meats.
The state regulator is currently undertaking a review to determine whether the potential 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.
CCPC
The CCPC’s deadline to make a determination in a Phase 1 investigation is 30 working days after the notification of the proposed acquisition.
However, the commission today (Monday, March 20) issued a request for information from the parties involved in the merger review.
This means that the clock has now stopped on the Phase 1 investigation until the required information is submitted to the CCPC. The commission then has 30 working days to make a Phase 1 determination.
Alternatively, the CCPC may choose to open a full Phase 2 investigation if it is felt that further examination of the proposed deal is warranted.
Kildare Chilling
The commission previously confirmed to Agriland that it has received two submissions from third parties as part of the merger review.
One of the submissions was made by the Irish Farmers’ Association (IFA).
IFA president Tim Cullinan has said that the purchase of Kildare Chilling by Dawn Meats would remove another significant standalone meat plant in the country.
Kildare Chilling is one of the main sheep processors in the country, accounting for around 20% of the national sheep throughput.
The company operates from a single site in Kildare town and sells its products under the Kildara and Heritage Town brands.
The slaughter halls at Kildare Chilling have the capacity to kill 120,000 cattle and 500,000 lambs per annum.
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.