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Origin and Bunn must resolve concerns over fertiliser merger

The CMA has found that Origin’s proposed acquisition of Bunn could reduce competition to supply fertilisers in Scotland.

Tractor on field

The companies must now offer proposals to address these concerns by 21 July or face an in-depth investigation.

Both companies are national blenders and distributors of fertilisers for use in agriculture.

Through its initial investigation, the Competition and Markets Authority (CMA) has found that Origin and Bunn are two of the three main suppliers of fertilisers in the central/eastern region of Scotland, supplying farmers and farmers’ merchants from their sites in Montrose. The CMA is concerned that bringing the two firms together could see prices rise for customers or result in a reduction in the choice of fertilisers available.

The CMA found that there were sufficient alternative suppliers in other areas of Great Britain. The merger will be referred for an in-depth investigation by an independent group of CMA panel members unless Origin can offer undertakings by 21 July which sufficiently address the CMA’s competition concerns.

All information relating to the merger is available on the case page.

Published 14 July 2017