Antitrust clearance sees Greencore edge closer to Peacock Foods acquisition

By Oscar Rousseau contact

- Last updated on GMT

Greencore expects its takeover of Peacock Foods to quadruple US sales
Greencore expects its takeover of Peacock Foods to quadruple US sales

Related tags: Stock market, Mergers and acquisitions, Beef, Lamb, Pork, Poultry

Greencore’s planned acquisition of American company Peacock Foods has moved a step closer to completion after gaining antitrust clearance from US authorities.

Ireland business Greencore, producer of 750 million sandwiches and food-to-go items per year, was granted early termination of its waiting period by the US Federal Trade Commission (FTC) on 28 November.

Under the Hart-Scott-Rodino Antitrust Improvements Act (1976), an amendment of US antitrust laws, parties cannot complete mergers or acquisitions until a detailed filling has been submitted to the FTC.

The early antitrust clearance moves Greencore a step closer to its $747.5 million (€704m) takeover of Peacock Foods – a supplier to Tyson Foods​, Kraft Heinz​ and Dole. Once complete, the acquisition is expected to quadruple Greencore’s US sales.

Done by December

An extraordinary general meeting (EGM) of Greencore’s shareholders will be held on 7 December 2016, with a sale of existing company shares set to open on the London Stock Exchange a day later.

The company expects the acquisition to be closed by 30 December 2016. The Dublin-based business has declined to comment further on the deal until its completion.

Established by the Irish government in 1991, Greencore’s annual revenue comes to around €1.7bn ($1.8bn).

In the last eight years it has been on a big acquisition spree. In 2008, it entered the US food convenience market with its takeover of Home Made Brand Foods. In 2011, Greencore acquired Britain’s Uniq plc, followed by the takeovers of HC Schau and MarketFare Foods in the US, as well as the UK’s International Cuisine in 2012.

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