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Dawn Meats’ proposed acquisition of Kildare Chilling will be the subject of a full phase two investigation by the Competition and Consumer Protection Commission (CCPC).
In a move that is certain to delay further any possible deal, the CCPC confirmed the proposed acquisition by Dawn Meats would now require a full phase two investigation.
“Following an extended preliminary investigation, which began in February 2022, 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 said.
“The CCPC will publish its phase one determination no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version,” it added.
Submissions
The CCPC stated that any parties who wished to make submissions to the phase two process should do so by Friday 14 July.
The proposed takeover of Kildare Chilling by Dawn Meats was notified to the CCPC in February last year and a phase one preliminary investigation was launched.
Kildare Chilling is one of the last ‘independent’ meat processors that is not controlled by either Dawn Meats, ABP or Kepak.
The factory is a major player in the sheep processing sector and in 2021 slaughtered around 555,000 sheep, accounting for 20% of the national kill.
It also killed around 70,000 head of cattle, 4% of the national kill.
The proposed purchase has created some unease among the farm organisations
Dawn Meats’ activities in Ireland consist of slaughtering, primary processing (deboning), further processing of meat products and rendering of waste products.
It operates seven sites across the state, focusing in particular on beef processing. Dawn Meats also has production and sales operations in Britain.
Last week, Dawn Meats announced that it was selling its stake in the French processor Elivia.
If the Kildare acquisition gets the green light from the competition watchdog, it would see Dawn Meats control over 30% of the national sheep kill.
The proposed purchase has created some unease among the farm organisations.
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