Scandi Standard acquisition blocked

Scandi Standard acquisition blocked

The Swedish competition authority, Konkurrensverket, is moving to block Scandi Standard's acquisition of fellow local poultry group Lagerbergs.

The competition watchdog announced it is going to court in an attempt to get a prohibition against the agreement over concerns it will lessen competition in the Swedish market. 

Responding to the news, Scandi Standard said that it "disagrees" with Konkurrensverket's assessment and will "review the submission" and "consider its options". 

The deal was originally announced in January last year. Lagerbergs is the third-largest chicken processor in Sweden. The company processes around 10m birds per annum and generated sales of SEK300m (US$36.5m) in 2014. Scandi Scandard had agreed to pay SEK105m for the business.

Scandi Standard has been working to boost its profitability through a focus on product development and efforts to increase efficiency in production. At the time the acquisition was announced, Scandi Standard said the deal would secure additional capacity in the Swedish market and generate "significant synergies".