Egg packers agree to interim separation - farmers weekly
Egg packers agree to interim separation - farmers weekly"
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The UK’s two largest egg packers (Deans Foods and Stonegate), whose merger is subject of a Competition Commission investigation, have agreed to partially reverse their integration as an
interim measure. Chairman of the inquiry, Dame Barbara Mills said: “When this merger was referred to the Commission, the companies had already integrated their businesses to a significant
degree. “The measures we have now agreed provide satisfactory separation of the businesses and other safeguards protecting our scope for action, if we were to conclude that this merger
created a substantial lessening of competition.” Measures include separating activities such as sales and marketing, farm management, human resources, IT, finance and accounting. The
companies will separate transport and forecasting after the peak Christmas sales season. Other measures include appointing separate chief executives for the Deans and Stonegate businesses,
restrictions on transferring confidential information and key staff between companies. The new parent group, Noble Foods, will become a non-operational holding company.
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