ForFarmers and 2Agriculture merger plan abandoned
Plans of a joint venture between agricultural suppliers ForFarmers and 2Agriculture have been dropped by the companies.
The merger had been subject to an in-depth investigation by the Competition and Markets Authority (CMA) which found that many livestock producers could face higher feed costs if it was approved.
Dutch-owned animal feed supplier ForFarmers and poultry feed business 2Agriculture, a division of the Boparan Group, first announced intentions to merge in July 2022.
See also: ForFarmers and 2Agriculture merger faces in-depth investigation
The decision was made by the two companies after factoring in costs, business implications, and the impact on staff and farmers.
The companies believed that the merger would have led to improvements in both feed quality and production efficiency which would have benefited farm businesses and consumers.
However, the CMA warned it could lead to a substantial lessening of competition in the feed sector.
A statement issued by both parties said: “ForFarmers and 2Agriculture continue to believe that the joint venture would have made for a robust business, with improved expertise and presence across species, to successfully meet the changing demands from the entire value chain.
“This included helping farmers realise the transition towards a more sustainable way of farming with enhanced returns.”