Tuesday 28 February 2017

Food sector dominates takeovers

Peter Flanagan

Peter Flanagan

M&A activity

NEARLY a third of all mergers and acquisitions presented to the Competition Authority (CA) last year were in the food and dairy sector.

According to the 'Review of Irish Merger Control 2003 to 2011', from the law firm McCann FitzGerald, there were 40 deals presented to the CA last year, 12 of which came from the food and dairy industry.

The figure of 40 deals in 2011 was down slightly on the 47 done a year earlier, but is less than half the 98 M&A trades executed in 2006. In 2009 there were just 27 such deals.

Close to 90pc of the deals were acquisitions of a majority stake, with the remainder related to joint ventures or acquisitions of joint control.

The Glanbia purchase of part of Golden Vale, Connacht Gold's acquisition of the milk and retail store division of Donegal Creameries, and the failed Greencore/Northern Foods merger were all approved unconditionally, as was the Musgrave takeover of Superquinn.

The other longer reviews were into the acquisition by JD Sports of Champion Sports and a joint venture between state-owned TV channels RTE and TG4, to broadcast in the North.

Irish Independent

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