The takeover of Banham Poultry by Boparan Private Office (BPO) hangs in the balance as the deal may have broken market competition rules.

The Competitions and Market Authority (CMA) is investigating whether the takeover of the Attleborough poultry firm would result in the new parent company owning too too big a market share.

BPO already owns turkey giant Bernard Matthews and the 2 Sisters Food Group.

The CMA is due to make its decision about the sale by the end of next week, with an announcement expected on March 25.

The sale of Banham Poultry was completed on October 18 2021, but it had not been fully finalised when an initial enforcement order (IEO) was issued at the start of November.

This is normal practice at the start of an investigation into a merger and means that the two companies remain separate until the CMA decision is made.

If it is decided that the takeover breaks competition rules, the CMA could require part of the business be sold off separately, to get approval.

This may impact jobs at the Attleborough site and the firm's supply agreements with local farmers.

Prior to the takeover bid, the poultry factory, which processes 800,000 chickens a week, had been struggling.

During the pandemic the business had to close down its operations and last August the Health and Safety Executive made enquiries after a chemical spill.

When the deal with BMO was first announced in October last year a spokesperson for Banham Poultry said: "We have a strong track record in investing in and supporting the food processing and agricultural sectors, and we are totally committed to maintaining production capacity and jobs at the Banham site.

"This acquisition should be viewed as very good news for Banham employees, farmers, customers and suppliers and we will ensure that their needs will continue to be fulfilled."

Banham Poultry was previously sold to Chesterfield Poultry in October 2018.