UK merger would give Noble Foods 46 percent of egg market
The planned merger between Deans Foods and Stonegate would give the
new company, Noble Foods, a 46 percent control of the UK's egg supply. The UK
Office of Fair Trade is reportedly investigating the proposed merger to
determine whether it would have a negative effect on egg market
(with 34 percent of the current market) and Stonegate
12 percent), as subsidiaries of Noble Foods, will continue offering different
approaches to egg marketing.
The new company will be equally owned by
Peter Dean of Deans Foods and Michael Kent of Stonegate.
will have its head office at Tring, Hertfordshire, but both Deans and Stonegate
will continue to operate from their existing bases.
The two owners
told the association that the new company will be better placed to meet the
increasing economic challenges and future legislative pressures facing the egg
"If the UK industry is to continue to provide consumers with
the type of eggs they want at an affordable price, it must be organised to
optimise the supply chain process of collecting, packing and distributing eggs,"
they are quoted as stating.
"Both our companies are expert in this
field but we believe that by coming together and exploiting the synergies
between us, we can create a streamlined, world class company, fit to face the
The total UK output is about 12.5 million dozen
eggs a week.
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