Kerry's Breeo deal faces more scrutiny

Kerry Group's proposed €165 million purchase of Breeo Foods is to face a second investigation by the Competition Authority.

It said that a preliminary scrutiny of the takeover was unable to conclude that the acquistion "will not substantially lessen competition" in the Irish food market.

The Competition Authority is concerned about the sale because both parties are involved in distribution of consumer foods such as cooked meats, cheese, spreads, chilled juice, fresh dairy products and pre-packed sandwiches.

A statement from the Competition Authority, issued today, said that the 'phase 2' investigation of the proposed acquisition "will examine the effect on competition in the sale and distribution of various consumer foods in the State."

Breeo, which is owned by Reox Holdings, includes the Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno brands. The acquistion also includes Breeo Foods's chilled-foods distribution service.

The Competition Authority is to make its decision by August 31st.