The UK’s anti-trust regulator has opened an inquiry into meat giant ABP Food Group’s indirect minority stake purchase in Dovecote Park.
In August, ABP bought a minority holding in Extra Detail from Benoni, which itself held a minority interest in Dovecote Park - a Yorkshire-based beef processor and a supplier to grocer Waitrose.
“Benoni, as a minority shareholder, will 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 to grow and develop the Dovecote Park business,” Dovecote had said at the time.
As part of the transaction, ABP also gained a board seat at Extra Detail and its subsidiary companies.
Launching the phase one inquiry yesterday (29 October), the Competition and Markets Authority (CMA) said it will assess whether the deal has created, or could create, a relevant merger situation under the merger provisions of the Enterprise Act 2002.
The regulator will also consider whether the deal has caused, or could be expected to cause, a “substantial lessening of competition” in any UK market for goods or services.
Interested parties have until 12 November to submit comments. The CMA is due to reach its phase one decision by 27 December.
In its initial enforcement order in September, the CMA had instructed ABP and Extra Detail to operate separately while it reviews the Irish meat group’s investment.
The watchdog said it had “reasonable grounds for suspecting” the companies “have ceased to be distinct”.
The order prevents the parties and associated entities from integrating their operations, transferring ownership or control, or undermining their capacity to compete separately. Besides, Dovecote Park must retain its independent operation and its “separate sales or brand identity”.
The CMA also required separate customer and supplier lists, barred joint negotiations, and restricted significant changes to organisational structures or key personnel.
Commercially sensitive information must not be exchanged except in limited circumstances, as per the order.
Dovecote Park’s latest Companies House accounts, for the year ended 26 September 2025, showed turnover growing 23.2% to £347m ($467.2m).
Operating profit declined 18.9% year-on-year to £3.6m, while profit for the period fell 17.1% to £2.6m, as higher cost of sales and distribution expenses offset revenue growth.
