According To Our ForFarmers

The CMA’s write-up of its Phase 1 decision regarding the joint venture between Forfarmers and Boparan raises several important points relevant to parties assessing merger control prospects, including :

  1. It cannot be assumed that the CMA will use the same travel distances for catchment areas as in previous cases that the parties think are similar
  2. Local share of supply thresholds can form the SLC decision rule (rather than a trigger for further analysis) – even in cases where the number of local areas for consideration is small
  3. The level of the share of supply thresholds used to determine SLC (in this case 35% + 5%) depends on the facts of the case – for example, whether rivals have spare capacity.

The CMA identified horizontal and vertical competition concerns.

The deal has been abandoned shortly after reference to a Phase 2 investigation.

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