The European Commission has approved the creation of a joint venture by Cargill and Faccenda Foods. Under the proposed joint venture, Cargill’s fresh chicken business in the U.K. would be combined with Faccenda’s fresh chicken, turkey and duck business.
In a press release, the commission stated that it found that the proposed joint venture would raise no competition concerns because the companies’ market shares are small in the relevant areas outside of the United Kingdom.
While the joint venture has been approved by the European Commission, it has yet to gain approval by the U.K. Competition and Markets Authority.
Faccenda, Cargill plans for joint venture
The two companies announced their intent to establish the joint venture in September, stating that the new company would have the capability to respond to changing customer needs in the retail and foodservice sectors with a strategy for growth.
The planned new company, which has not yet been named, will be a standalone business, with Cargill and Faccenda Foods taking an equal shareholding.
Andy Dawkins, managing director for Faccenda Foods, will be appointed chief executive officer of the new company, while Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer of the joint venture.
The new business is expected to employ about 6,000 people in the U.K., with employees coming from both parent companies. The joint venture is expected to operate across multiple agriculture and operational centers, with broad capabilities that span the supply chain focused on operational excellence and customer focused partnerships.
“This is an exciting time,” Ian Faccenda, CEO of Faccenda Investments, stated in a press release issued in September. “We are bringing together talented people from both businesses with complementary values and expertise, and giving them the opportunity to develop and be successful in a new business with the capability to grow.”