Boparan - comment

The potential challenge by the CMA to the merger of 2Agriculture and ForFarmers UK reflects the 40% - 60% market penetration in parts of the Northern UK. The merged entity will be a major supplier of feed to Hook 2 Sisters (50% owned by Boparan). So, any improved margins will be from the pocket of Boparan (recoverable from supermarket customers). The CMA is willing to accept proposals from the merged entity to mitigate its market control concerns. The deadline for proposals was 30/12/22. Our assessment is that the deal will be tweaked by Boparan Private Office/ForFarmers, as neither party will want the cost and delay of an in-depth Phase 2 investigation.