The Competition and Markets Authority (CMA) is investigating the acquisition of Bernard Matthews by Ranjit Boparan.
Boparan Private Office, the private investment vehicle of Boparan, bought the Bernard Matthews business and assets through a pre-pack sale in September.
The case is being investigated as, according to CMA, there is ‘reasonable grounds for suspecting that it is or may be the case that enterprises conducted by Ranjit Boparan and Baljinder Boparan and the business formerly carried on by Bernard Matthews Limited have ceased to be distinct.’
The authority will consider whether the merger has been created and whether it has resulted in, or can be expected to result in, a substantial lessening of competitions in any market or markets in the UK.
Since the confirmation of the acquisition in September the deal has had numerous complications.
Reports surfaced at the start of October that approximately 900 creditors to Bernard Matthews will not be repaid a total of £23 million.
According to a report from the BBC, a letter sent to creditors by the administrators Deloitte confirmed that there was no money to settle the debts.
Meanwhile a report written by Professor Prem Sikka of the University of Essex alleges the acquisition as having been “carefully crafted to enable secured creditors and controllers of Bernard Matthews to extract maximum cash from the company and dump the pension scheme and other liabilities.”
According to Sikka the Bernard Matthews Pension Fund, which recorded a published deficit of £17.5 million, is likely to only receive 1p in the pound at best.
“No attention has been paid to the hardship caused to retired and existing employees,” Sikka reported. “It is all too easy for companies, their director and shareholders to extract cash and dump pension obligations to employees, leaving the Pension Protection Fund (PPF) or taxpayers to foot the bill and effectively boost returns to corporate elites.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
