KERRY GROUP chief Stan McCarthy is mulling over whether to challenge in the High Court a ruling from the Competition Authority that blocks its €165 million purchase of the food brands owned by Reox, the Diarygold spin-off.
Although some close observers believe an appeal is likely, the company does has until September 28th to decide if should go to court to seek a reversal of the ruling.
Some rival bidders for the Reox assets - which drew interest from private equity firms Ion Equity, Jaguar Capital and CapVest - are understood to be examining whether they might renew their interest.
However, a Reox spokesman insisted last evening that "the business is not for sale".
After a full investigation, the Competition Authority moved to prohibit the Kerry deal.
It did so on the grounds that it would "substantially lessen" competition in the market for the production, supply and distribution of rashers, non-poultry cooked meats and processed cheese.
Kerry already owns some of Ireland's best-known food brands. Before proceeding with the deal in May, the company worked to eliminate competition issues arising from its ownership of Denny bacon, Charleville cheese and diaryspreads Low Low, Move Over Butter and Kerrymaid.
The deal, if it went ahead, would have seen Kerry take control of cheese labels Mitchelstown and Calvita, bacon and sausage label Galtee, bacon and ham label Shaws and the dairyspread brand Dairygold.
These are owned by the Breeo Foods unit of Reox, which was spun-off from Dairygold Co-op to grow its property, consumer foods and DIY businesses.
The authority's ruling marks a big setback for Mr McCarthy, who pledged soon after he took the top seat in January to double Kerry's revenues to €10 billion within five or six years.
"Kerry is disappointed at today's decision of the Competition Authority and awaits the reasoned written determination of the authority," the company said in a statement.
Reox, too, said the ruling was disappointing.
"It is business as usual for Breeo Foods," said chairman Flor Riordan, adding that Reox would continue to operate the business.
"Reox Holdings will continue to build on Breeo's position in the market and exploit opportunities which will arise to maximise shareholder value through the business."
Reox started the sale process last year after receiving an unsolicited approach from Ion Equity.
"Ion will monitor the situation, but there's nothing further to add at this time," said an Ion spokesman.
