ABP’s takeover of Scotbeef sites cleared by CMA

The Competition and Markets Authority (CMA) has cleared the acquisition by ABP of Scotbeef’s Bridge of Allan abattoir in Stirlingshire and its Queenslie meat packing plant in Glasgow.

The decision was welcomed by ABP and both sites will now become part of its UK meat division, as well as a processing facility in Perth, Scotland.

ABP’s purchase of the two sites from Scotbeef was first announced in June this year.

However, some industry bodies, including NFU Scotland and the National Beef Association, raised concerns about further consolidation within the meat processing sector.

See also: CMA investigates ABP purchase of two Scotbeef sites

In July, the CMA made an initial enforcement order to look into the takeover and then, in September, launched a merger inquiry.

The CMA then revoked the initial enforcement order in October and finally cleared the acquisition on 9 November.

Frank Stephenson, chief executive at ABP Food Group, said: “I would like to welcome our new colleagues and farmer suppliers to ABP and look forward to further developing opportunities for quality Scottish beef and lamb products in the retail and food service sectors across the UK and further afield.”

ABP already works with 1,600 Scottish farmers and has 320 employees at its existing sites in Scotland. The wider business employs 13,200 people and has a turnover of about £5bn.

A full background on the decision to clear the acquisition is due to be released by the CMA shortly.