ABP buys remaining 50% stake in Linden Foods Company already owned 50% shareholding in partnership with Fane Valley Foods
about 10 hours ago
ABP has acquired the remaining 50 per cent shareholding in Linden Foods it doesn’t already own in partnership with Fane Valley Foods, the company confirmed on Thursday.
No financial details surrounding the transaction have been publicly disclosed.
The Larry-Goodman owned food processor acquired an initial 50 per cent stake in Linden Foods in 2017 through its joint venture with Fane Valley.
The original deal was referred to the European Commission over competition concerns and the new transaction is subject to approval by the relevant regulatory and competition authorities
SHARING OPTIONS:
The ABP plant in Cahir, is one of seven ABP locations for cattle in Republic of Ireland plus two in Northern Ireland.
Thursday’s announcement that ABP has bought out the Fane Valley interest in red meat processing in Slaney, Irish Country Meats and Linden Foods in Northern Ireland (NI) and Britain won’t be a major shock to farmers.
The joint venture (JV) was announced late in 2015 when ABP acquired the Allen family shares in the Slaney/ICM business which had been operated as a JV between Linden and the Allens up to that point.
There was surprise at the time that Linden, which at that point was wholly-owned by the NI-based farmer owned co-op, didn’t step in to acquire the remainder of the Slaney/ICM business, rather than leaving it open for ABP to get involved.
ABP in deal to buy remaining 50% of Linden Food Group
Updated / Thursday, 6 May 2021
17:54
The deal includes Linden Foods in Northern Ireland and Slaney Foods and Irish Country Meats businesses in the Republic of Ireland
Agri-business company ABP said it has agreed a deal in principle with Fane Valley Co-op to buy the remaining 50% holding in its red meat business for an undisclosed sum.
The deal includes Linden Foods in Northern Ireland and Slaney Foods and Irish Country Meats businesses in the Republic of Ireland.
These businesses operated as an ABP/Fane Valley joint venture for the last five years.
ABP said the businesses will continue to operate under their respective trading names for the foreseeable future and the sites will continue to operate as normal.
ABP to takeover Slaney Foods and Irish Country Meats
ABP is set announce the takeover of the remaining shares in Slaney Foods in Clohamon and Irish Country Meats in Camolin.
In a statement released this afternoon the Irish Farmers Journal says – that ABP is to buy out Fane Valleys share of Slaney, Irish Country Meats and Linden Foods in Northern Ireland.
It means the end of joint venture with Fane Valley and hand full control to the Goodman Group.
IFA President Tim Cullinan said the full takeover of Slaney Meats and ICM by ABP is a further erosion of competition in the processing sector.
IFA president Tim Cullinan said the CCPC had continuously failed farmers. / Philip Doyle
IFA president Tim Cullinan said Minister for Agriculture Charlie McConalogue must urgently review the situation and that it pulls into renewed focus the need to implement primary legislation to provide the office of the food regulator with powers to positively support the supply chain.
“The Consumer Protection and Competition Commission (CCPC) has continually failed farmers in this area, Cullinan said.
“The figures speak for themselves: breakeven prices for beef are €4.50/kg, but this is rarely achieved due to a combination of factors including lack of competition in the processing sector, high dependence on large supermarket chains and the powers they have been allowed establish and the importation to our key markets of sub-standard produce,” he said.