UK merger would give Noble Foods 46 percent of egg market

07-07-2006 | |

The planned merger between Deans Foods and Stonegate would give the new company, Noble Foods, a 46 percent control of the UK’s egg supply. The UK Office of Fair Trade is reportedly investigating the proposed merger to determine whether it would have a negative effect on egg market competition.

Deans Foods (with 34 percent of the current market) and Stonegate (with 12 percent), as subsidiaries of Noble Foods, will continue offering different approaches to egg marketing.

The new company will be equally owned by Peter Dean of Deans Foods and Michael Kent of Stonegate.

Noble Foods will have its head office at Tring, Hertfordshire, but both Deans and Stonegate will continue to operate from their existing bases.

The two owners told the association that the new company will be better placed to meet the increasing economic challenges and future legislative pressures facing the egg sector.

“If the UK industry is to continue to provide consumers with the type of eggs they want at an affordable price, it must be organised to optimise the supply chain process of collecting, packing and distributing eggs,” they are quoted as stating.

“Both our companies are expert in this field but we believe that by coming together and exploiting the synergies between us, we can create a streamlined, world class company, fit to face the challenges ahead.”

The total UK output is about 12.5 million dozen eggs a week.