Canadian Competition Bureau Clears Darling And Rothsay Deal

(RTTNews) - Canadian Competition Bureau, Friday approved the deal between Darling International Inc. (DAR), and Rothsay, a division of Maple Leaf Foods Inc. (MFI.TO). The bureau came to a conclusion that the proposed transaction was unlikely to lead to a substantial lessening or prevention of competition in any market.

The bureau took into consideration two relevant product markets on the input side of the business, the collection of animal by-products; and the collection of grease. On the output side, the following were considered, animal meals and fats used in animal feed; animal meals and fats used in pet food; and tallow and grease. The geographic scope of the business was also considered, and the Canadian regulators concluded that Darling was not an effective competitor in any of the relevant markets.

Darling International, a provider of rendering, recycling and recovery solutions, on August 23 entered into a definitive agreement to buy Rothsay, a recycler of animal by-products in Canada, and a division of Maple Leaf Foods Inc. for about C$645 million in cash. The deal is expected to close by the end of 2013.