Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Linergy's acquisition of Ulster Farm cleared by UK Competition and Markets Authority, (Jan 8, 2016)

By Edward L. Puzzo, J.D.

The acquisition of Ulster Farm By-Products (UFBP) by Linergy has been cleared by the United Kingdom s Competition and Markets Authority (CMA), the agency announced. Both firms process animal by-products and fallen stock through plants located in Northern Ireland. Their customers include slaughterhouses, deboning plants, other food processors, retailers such as butchers, and purchasers of outputs from the rendering process (tallow and meat and bone meal).

The CMA determined that the merger would not be expected to result in a substantial lessening of competition because the companies own different categories of rendering plants, operating in different markets. The agency also looked at whether Linergy’s part ownership by meat processing companies could lead it to use the acquisition of the UFBP plant to disadvantage competing meat processing customers by raising prices for rendering services or refusing to process their material at all. The CMA found that customers could still use alternative renderers, that there would be options other than rendering for customers, and that Linergy’s shareholders would not benefit significantly from such a tactic, making them unlikely to attempt it.

The final report is available on the inquiry case page along with all other published information relating to the inquiry.

Companies: Ulster Farm By-Products Limited; Linergy Limited

News: AcquisitionsMergers Antitrust