Competition Authority Blocks Kerry Group’s Acquisition of Breeo Foods

It is only the third time that the Competition Authority has blocked a proposed merger since the provisions of the Competition Act regarding merger control came into effect in January 2003.

01/09/08 The Irish Competition Authority has decided to prohibit the proposed acquisition by Kerry Group plc (through Rye Investments Limited) of the entire ordinary issued share capital of Breeo Foods Limited and Breeo Brands Limited on the grounds that such a transaction would substantially lessen competition in the markets for the production, supply and distribution of rashers, non-poultry cooked meats and processed cheese in the State. The Kerry Group looked set to acquire Breeo Foods for €165 million.

The Competition Authority’s determination follows a full investigation by the Authority’s Mergers Division. It is only the third time that the Competition Authority has blocked a proposed merger since the provisions of the Competition Act regarding merger control came into effect in January 2003.

Kerry said it was disappointed with the decision and awaits the reasoned written Determination of the Authority. On receipt of this Determination, Kerry Group will be in a position to analyse and consider all of its available options.