28/11/2017 – News / USA / UK / Poultry / Cargill / Faccenda Foods / EU
Cargill and Faccenda Foods deal gets EU approval
First announced in September, the proposed joint venture between Cargill and Faccenda, which will combine Cargill’s fresh chicken business in the UK with Faccenda’s fresh chicken, turkey and duck business, has been given the go ahead by the European Commission.
In October the European Commission granted a request to refer the assessment of the transaction’s effects on competition in the UK to the UK’s Competition and Markets Authority (CMA), which is still underway. The European Commission found that the remainder of the transaction would raise no competition concerns because the companies’ market shares are small in the relevant areas outside the UK.
According to Faccenda, the new company will have the capability to respond to changing customer needs in the retail and food service sectors with a strategy for growth. The new joint venture will be a standalone business, with Cargill and Faccenda taking an equal shareholding. It brings together two complementary businesses with a track record of success, shared values and a strong reputation in the UK poultry market.
Andy Dawkins, Managing Director for Faccenda Foods, will be appointed CEO of the newly formed company. Chris Hall, Fresh Chicken Director for Cargill Meats Europe, will be appointed Chief Commercial Officer of the new joint venture.
Supply chain spanning capabilities
The new business plans to employ approximately 6,000 people in the UK, with employees coming from both parent companies. It will operate across multiple agriculture and operational centres, with broad capabilities that span the supply chain focused on operational excellence and customer focused partnerships.
“We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers. The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers,” explains Chris Langholz, President of Cargill Poultry.
“Both Cargill and Faccenda are recognised today by their customers for their high standards and great service,” continues Ian Faccenda, CEO of Faccenda Investments. “The new joint venture confirms our long-term commitment to being a responsible partner across the entire supply chain, providing stability and security to our customers, suppliers and growers for years to come.”
A decision by the UK’s CMA is expected in late December, while the name of the new joint venture is going to be announced at the closing of the deal.