Origin Enterprises reaches deal with CMA to complete Bunn acquisition
(ShareCast News) - Agri-services group Origin Enterprises announced the completion of its acquisition of Bunn Fertiliser's fertiliser activities and assets on Thursday, having reached an agreement with the Competition and Markets Authority.
The AIM-traded firm initially announced the acquisition on 7 March, for cash consideration totalling £14.2m on completion, funded from existing bank facilities
However, the Competition and Markets Authority found the acquisition could reduce competition to supply fertilisers in the central and eastern regions of Scotland.
It told Origin that, unless it could address its concerns, the acquisition would face an "in-depth investigation".
On 28 July, Origin told markets that it had proposed "specific undertakings" to address the CMA's concerns, which the regulator had accepted "in principle.
"The Competition and Markets Authority has agreed to Origin holding the Bunn site at Montrose, Scotland separately, having agreed in principle to Origin ultimately divesting this site to obtain UK merger clearance," Origin's board said on Thursday.
The agreement with the CMA meant the sale had now completed.