EU clears Marfrig takeover of Seara

Related tags European union

Chicken processors in the UK and Netherlands will not face unfair competition by Marfrig’s takeover Seara, said the European Commission as it cleared the deal.

The EC gave Brazilian giant Marfrig the go-ahead to acquire compatriot Seara late last week after concluding “the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it”.

Brussels said it had decided to examine the takeover as over concerns the parties' activities would overlap in the supply of primary chicken meat and processed chicken meat mainly in the UK and The Netherlands. But officials said Friday they foresaw no problems as the new company “would continue to face several effective competitors with considerable market share”.

Marfrig, which has plants in Brazil, Europe and throughout South America, produces food derived from meat. Seara, which is currently a subsidiary of Cargill, is involved in the production of primary and processed pork and chicken. It has no European-based plants but exports chicken through its sales offices in the region.