10 August 2000
Farmer business merger off
By FWi staff
A MERGER that was to create the biggest farmer-controlled business in the UK is now off the cards.
SCATS and Countrywide Farmers (CWF) have withdrawn full merger plans, as directors believe it would have incurred costs and tax charges that outweighed the benefits.
They will not recommend a full merger of the two companies to their shareholders.
In a joint statement chairmen John Bush of CWF and Andrew Christie-Miller of SCATS say: “Going through with the merger would have a consequent diminution of shareholder value.
Retail purchasing and distribution benefits can be achieved more cost effectively through collaboration.”
Merger discussions were first announced in April, and since then assets have been transferred between the two businesses.
SCATS has acquired CWFs grain business and CWF have bought SCATs compound feeds business.
The retail divisions of both organisations operate 60 country stores.
It has been agreed that they will work together to secure mutual economic benefits in purchasing and distribution.