The Competition and Consumer Protection Commission has cleared the proposed purchase of Kildare Chilling by Dawn Meats Ireland, saying it will not substantially lessen competition in the market.
Dawn Meats slaughters, processes and sells beef and lamb meat products and operates seven sites across the country. It also exports to 50 countries around the world.
Kildare Chilling, operates a single site in Kildare town, and slaughters and debones cattle and sheep, and sells the resulting fresh meat cuts and by-products.
The proposed acquisition was originally notified to the CCPC in February of this year.
After an extended preliminary probe, the CCPC determined in June that a full investigation was needed to see if the proposed deal would lead to a substantial lessening of competition in the State.
As part of its investigation, the CCPC examined how the proposed deal would affect competition in several potential markets.
These included the purchase of live cattle for slaughter within a 100km radius of Kildare Chilling's operations and in the State, the purchase of live lamb and sheep for slaughter, the sale of fresh lamb and beef meat to grocery retailers and the sale of fresh lamb and beef meat to industrial processors in Ireland.
After the probe, the CCPC said a sufficient number of competitors in each of the potential markets considered will remain after the deal.
It added that Dawn Meats and Kildare Chilling are not particularly close competitors in any of these potential markets.
"As a result, the CCPC has determined that the proposed acquisition will not substantially lessen competition and can be put into effect," it said in a statement.
Dawn Meats has welcomed today's decision of the Competition and Consumer Protection Commission to clear the deal, and said it plans to invest a total of €10m in the plant.
Niall Browne, chief executive of Dawn Meats, said he believes the deal for Kildare Chilling will bring extensive benefits to both companies.
"We intend to work closely with the team on site and invest significantly in Kildare Chilling to ensure the continuation of the very best standards and the highest levels of sustainability," Mr Browne said.
"Kildare Chilling will be a significant business within the Dawn Meats Group and its products will boost our offering to our leading supermarket, food service and manufacturing customers," he added.
But IFA President Tim Cullinan said the approval would reduce competition for beef and sheep farmers, not only within the 100km radius, but throughout the country.
Mr Cullinan said the findings of the investigation accept that competition will be reduced, but by their measure, not substantially.
"Allowing any reduction in competition between buyers of cattle and sheep is not acceptable," he said.
"The CCPC has failed farmers yet again in facilitating this acquisition."
