The UK's competition watchdog has provisionally cleared 2Agriculture's proposed purchase of ForFarmers' Burston and Radstock feed mill sites.
The decision follows an in-depth investigation which looked at fears over the impact of the poultry giant's acquisition, particularly on farmers paying higher prices.
ForFarmers and Boparan - which owns 2Agriculture - both manufacture and supply chicken feed and other types of poultry feed in the UK.
The Competition and Markets Authority’s (CMA) previous investigation found that Boparan's proposed purchase of ForFarmers’ sites could lead to a 'substantial lessening of competition' in the supply of poultry feed to East Anglia farmers.
It also found that as a result of the transaction, Boparan would have the 'ability and incentive to harm rival poultry meat producers'.
Following a new investigation, the CMA has provisionally found that Boparan’s purchase of the Burston feed mill site could reduce the capacity available to manufacture chicken feed for chicken suppliers in the area around the mill in East Anglia.
However, it said that these suppliers would still have choice and the option to switch providers due to competition from other chicken feed providers in the market.
Therefore, the CMA provisionally concluded that it "does not believe the merger will lead to a substantial lessening of competition as a result".
Kirstin Baker, chair of the independent inquiry group, said: "We have provisionally found that Boparan’s purchase of ForFarmers’ Burston feed mill does not raise competition concerns.
"We’re reassured by the evidence which shows that farmers and chicken suppliers in the UK will continue to have options when it comes to choosing chicken feed providers, should the deal go ahead.
"We’re now seeking feedback and views on our interim report before reaching a final decision."
The CMA's independent inquiry group will now consult on its interim report and is inviting any feedback from interested parties by 11 March 2025.
A final decision will be made by the statutory deadline of 13 May 2025.
