The Competition and Markets Authority (CMA) has launched an investigation into the acquisition of two Scotbeef red meat facilities by Irish red meat giant ABP Foods.
The watchdog has served an initial enforcement order, after the Scottish farming industry called the acquisition a 'significant concern'.
ABP Foods - one of Europe's largest food businesses based in Ireland - announced in June it will buy ScotBeef's abattoir at Bridge of Allan and its meat packing facility at Queenslie.
But NFU Scotland said any consolidation in red meat processing "risks undermining the healthy competition required in our markets for red meat".
The future of Scotland's live auction ring system was "critical" to transparency for the primary producer, and this "must be maintained in Scotland".
The union's president, Martin Kennedy: "The acquisition of ScotBeef’s Bridge of Allan abattoir and Queenslie meat packing plant in Scotland by ABP Food Group is a significant concern for our membership.
"It is imperative that investment in the sector continues to focus on local, multi species abattoirs to maintain and underpin production of our iconic red meat in Scotland."
The CMA said: "The CMA is investigating the acquisition by ABP UK of Scotbeef Ltd’s businesses at Longleys Farm, Bridge of Allan, Stirlingshire and Penston Road, Queenslie, Glasgow."
"The CMA has served an initial enforcement order under section 72 (2) of the Enterprise Act 2002 on ABP Food Group, Anglo Beef Processors and Anglo Beef Processors UK."
The date of CMA's merger inquiry is yet to be announced.
