US antitrust regulators have moved to block Nestlé’s proposed acquisition of US ice cream maker Dreyer’s Grand Ice Cream.
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The US Federal Trade Commission voted unanimously to authorise staff to seek a preliminary injunction against the takeover deal, because of concerns the deal would lead to too little competition between the top brands.
“This merger, as structured, would likely raise prices and reduce choice for consumers,” Joe Simons, director of the FTC’s Bureau of Competition, said in a statement, as quoted by Reuters.
“The market for superpremium ice cream is already highly concentrated, and this deal will reduce the number of significant competitors from three to two,” said Simons.
Nestlé, Dreyer’s and Unilever together account for around 98% of gourmet ice cream sales in the US.
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By GlobalDataNestlé and Dreyer’s said they had not given up on the deal and that they were continuing with talks with the FTC about the potential divestiture of assets to enable the acquisition to go ahead.
