The Competition and Consumer Protection Commission (CCPC) has today (Friday, July 14) decided to carry out a full Phase 2 investigation into the proposed acquisition by Aurivo Consumer Foods Ltd., a subsidiary of Aurivo Co-operative Society Ltd., of certain assets of Arrabawn Co-Operative Society Ltd.
Aurivo is an agri-business cooperative, with primary activities of sale of dairy ingredients and dairy products such as powders and fresh milk, cream, butter, and ready-to-drink protein shakes.
The CCPC also noted that Aurivo is also active in the operation of agri-retail outlets which sell animal feeds, agricultural goods, hardware and other products.
Arrabawn is an agri-business cooperative with business activities that include the sale of dairy products, food ingredients and animal feed products, as well as the operation of agricultural retail stores.
Acquisition of Arrabawn
The proposed acquisition would see Aurivo acquire specified assets comprising parts of Arrabawn’s business for the supply of branded and unbranded liquid milk, cream and butter products.
Following an extended preliminary investigation, which began in February 2023, the CCPC has determined that a full investigation is required in order to establish if the proposed acquisition could lead to a substantial lessening of competition in the state.
The CCPC will publish its Phase 1 determination no later than 60 working days after the date of the determination, after allowing the parties the opportunity to request that confidential information be removed from the published version.
Any parties who would like to send in submissions are invited to do so via email to [email protected] by 4:30p.m on Wednesday, August 2, 2023.
Sale
Last August, the board of Arrabawn announced that it had decided to cease processing operations at its liquid milk plant in Kilconnell in east Co. Galway by summer 2023.
The proposed deal involves the purchase of the liquid milk contracts by Aurivo. However, Arrabawn would retain ownership of the plant and is set to examine alternative uses for the facility.
The takeover is subject to due diligence and approval from the CCPC.
Arrabawn Co-op employs 110 people in the liquid milk portion of its business.
If the deal is approved by the CCPC, Arrabawn said that approximately half of these workers will transfer with the business, with redeployment opportunities also being made available to others across the wider company.