The acquisition of Sussex Mushrooms by Monaghan Mushrooms is being investigated by the Office of Fair Trading (OFT).
The OFT is considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the Enterprise Act 2002.
The acquisition, announced earlier this month, further strengthens Irish firm Monaghan’s position in the UK mushroom market.
Should it be found to be a relevant merger situation, the OFT will further consider whether it might be expected to result in a substantial lessening of competition for goods or services and warrants reference to the Competition Commission for investigation and report.
Stephen Allen, group marketing manager for Monaghan Mushrooms, told freshinfo: “I can confirm that the OFT is looking at our acquisition of Sussex - this is standard practice and we continue to operate as normal.”
Allen added: “We are a strong player and we’ve been a strong player for a long time. We do not rest on our laurels and continue to improve. The mushroom sector is very competitive, if you take your eye off the ball even for a short time it can cost you.”
The OFT said that, although its investigations can be triggered by the merging parties themselves, it had acted on its own initiative.
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