As
exclusively revealed on www.farmersjournal.ie on Wednesday, Dawn Meats is to take control of Dunbia. Within the Republic of Ireland, the move will see Dawn Meats acquire full ownership of the Dunbia beef factory in Slane and beef processing facilities in Kilbeggan. It is likely to see Dawn Meats’ share of the national kill increase to between 24% and 26%.
As exclusively revealed on www.farmersjournal.ie on Wednesday, Dawn Meats is to take control of Dunbia.
Within the Republic of Ireland, the move will see Dawn Meats acquire full ownership of the Dunbia beef factory in Slane and beef processing facilities in Kilbeggan. It is likely to see Dawn Meats’ share of the national kill increase to between 24% and 26%.
Meanwhile, in the UK, the move will see the two businesses merge.
Despite Dawn Meats taking a controlling shareholding in the business, the new entity will trade under the Dunbia name.
Jim Dobson, who established the Dunbia business along with his brother Jack, will remain as chief executive, with Dawn Meats boss Niall Browne assuming the role of executive chair of the proposed joint venture.
The Dawn Meats business combined with the new Dunbia entity will process on average 900,000 head of cattle per annum and 2.6m sheep.
Browne said the deal would offer certainty for the business, especially in the context of Brexit.
IFA president Joe Healy said farmers are always concerned about the concentration of ownership in the beef processing sector because of the lack of competition, as evidenced in the independent competition report on beef processing commissioned by IFA in July 2016.
“The major concern for farmers is that they get a fair and viable price return from the market,” Healy said.
The deal is subject to approval by the relevant authorities.
Read more
Big three becomes big two - the growth of Dawn
Dunbia sale to Dawn nears endgame
Watch: Irish companies investing in UK ahead of Brexit
Editorial: Dawn-Dunbia deal: time to deliver increased transparency
This is a subscriber-only article
SHARING OPTIONS: