The CMA has ordered Britain’s largest beef processor, ABP, to keep at arms’ length from Dovecote Park while it investigates the relationship between the two businesses.
ABP took a minority share in Waitrose’s red meat supplier in April, appointing ABP veteran and director Tom Kirwan to its board.
The CMA has now issued an Interim Enforcement Order (IEO), which prevents either party from making major changes to their business or sharing sensitive information while it decides whether the deal should be investigated.
The IEO said it had “reasonable grounds for suspecting” that ABP and Dovecote Park’s parent company, Extra Detail, may have “ceased to be distinct”.
Both businesses must now share internal details of the transaction and engage directly with the watchdog.
If the CMA then decides there is grounds for concern over the acquisition, it may open a phase 1 investigation, in which it invites the public, customers and competitors to comment on the deal.
A spokeswoman for Dovecote Park told The Grocer in July that ABP would be supportive of the group’s strategic direction, “whilst maintaining the policy of acknowledging the current board and management team’s independent ability and authority”.
A spokeswoman for ABP said: “ABP Food Group notes the decision of the UK Competition and Markets Authority (CMA) to commence a review of its investment in Dovecote Park. This is a standard part of the regulatory process and ABP looks forward to engaging fully and constructively with the CMA throughout the review and will comply with all regulatory requirements.”
The Grocer has approached Dovecote Park for comment.
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