Australian chicken processor Inghams eyes takeover
Inghams, Australia's second largest chicken processor, has made an undisclosed offer for Sunnybrand Chickens, located in Byron Bay, Australia.
Sunnybrand Chickens CEO Bob Hansen says his company is considering the offer which the Australian Competition and Consumer Commission is considering whether or not it will review.
"What we're doing at the moment is going through the process of confirming that offer and making it a conditional offer, which will happen over the next two or three weeks," Hansen said.
"We'd been looking for new equity to make sure the business stays in the Northern River and Inghams made a good offer for the business."
However, chicken growers are concerned the loss of another small processor could affect their bargaining power. NSW Farmers' Association poultry meat committee chair Gary Ekert says further consolidation of the industry could have an impact.
"If you take another processor out of the equation it just limits the opportunity for growers, you've basically got a stranded asset," he said. "If the grower hasn't got any option to go to another processor, you haven't got too much bargaining left."
Source: ABC Rural
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