Denmark-based meat groups Himmerlands Food Group and Tican have secured approval for a venture to make convenience products.
The businesses will jointly own a venture – called Moert – that will manufacture and distribute products like minced and marinated meat.
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Moert will buy the ingredients for its products from beef processor Himmerlands and pork peer Tican, which is owned by Germany’s Premium Food Group.
Under the terms of the deal, parts of Himmerland’s business that involves selling smaller cuts to retail customers will move to the Moert venture.
In a report detailing its decision, Denmark’s competition regulator said the venture partners had insisted Moert will operate independently. The venture, for example, will be able to buy from other suppliers if it wishes.
The competition watchdog – the Konkurrence- og Forbrugerstyrelsen (KFST) – said Danish Crown had pointed to “a risk of coordination” between the venture partners.
In its report, the KFST said Himmerland and Tican will continue to have a presence “in the same or vertically connected markets” as Moert, such as the purchase of live cattle and the sale of fresh beef.
However, the watchdog accepted the venture partners’ position that they will have “activities to a very limited extent” to Moert.
