Boparan - comment

2 Agriculture’s proposed merger with ForFarmers UK would hamper the ability to cross-subsidise feed prices from the Boparan family to the Boparan group. However, given the new feed price ratchets this medium is now less important as additional costs are now being passed on to Supermarket customers quickly. If any CMA investigation blocked the merger or required disposals, the impact on Boparan would be less concerning than in the past, again due to the new ratchet agreements. However, it does underline the Boparan family's confidence in the upstream part of the poultry value chain.

2Agriculture (Boparan family-owned) and ForFarmers UK (ForFarmers NV, quoted in Amsterdam) propose a merger in a non-cash transaction. 2 Agriculture will hold 49.9% of the merged entity with ForFarmersUK owning the other 50.1%. The Competition and Markets Authority is contemplating launching an investigation into the merger.