The Competition Authority has blocked food group Kerry's proposed acquisition of Breeo Foods.
The authority said the deal would 'substantially lessen' competition in the markets for rashers, cooked meats and processed cheese.
Breeo Foods' brands include Dairygold, Galtee rashers and sausages, Shaws cooked meats, Calvita and Mitchelstown cheese and Sno yogurts. Kerry already owns brands such as Denny, Dawn, Ballyfree, Charleville Cheesestrings, and Low Low.
It is only the third time the competition body has blocked a proposed merger since the current legislation came into effect in 2003.
Kerry said it was disappointed, but it would analyse the authority's full report on the issue before considering its options. The authority must publish its findings within a month.
Kerry had agreed to buy the company for €165m from Reox Holdings, the Dairygold Co-op spin-off.
Reox also said it was disappointed, but chairman Flor Riordan said it would be 'business as usual' for the company.
