The Competition Authority announced today that it has decided to carry out a full (phase 2) investigation in relation to the proposed acquisition by Kerry Group plc, of the entire ordinary issued share capital of Breeo Foods Limited and Breeo Brands Limited from Reox Finance Limited, a wholly-owned subsidiary of Reox Holdings plc. Both parties are involved in the sale and distribution of consumer foods including rashers, sausages, puddings, cooked meats, cheese, spreads, chilled juice, fresh dairy products and pre-packed sandwiches. The proposed acquisition has not been required to be notified in any other jurisdiction.

The Competition Authority received notification of the proposed acquisition on 20 March 2008. The Competition Authority is required under Part 3 of the Competition Act, 2002 to determine whether the result of the proposed acquisition will “substantially lessen competition” in markets for goods or services in the State.

Following a preliminary (phase 1) investigation, the Competition Authority has been unable to conclude without further investigation that the transaction will not substantially lessen competition.

The Competition Authority has until 31 August 2008 to make a final determination on the transaction (but may conclude its investigation in advance of this date). The investigation of the proposed acquisition will examine the effect on competition in the sale and distribution of various consumer foods in the State.

Breeo Foods’ brands, including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno, are marketed through all retail channels in Ireland including multiple retail, symbol group and food-to-go outlets. Complementing Kerry Foods’ chilled foods branded offering on the Irish market and Kerry’s distribution network, the proposed acquisition also includes Breeo Foods’ chilled foods distribution service.

The total consideration agreed by Kerry was €165m.