The European Commission (EC) has approved, subject to conditions, the proposed take over bid by Italian group Barilla for German bakeries giant Kamps.
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Fearing that the deal might reinforce Barilla’s leading position in Germany for crispbread, however, the EC has insisted that Barilla divest Lieken Urkorn’s crispbread business to a viable competitor with experience in the food sector.
Barilla already owns the Wasa brand, the uncontested market leader in Germany, and the addition of Kamps’ Lieken Urkorn would have strengthened this position.
Barilla and Italian bank Banca Popolare di Lodi Scarl (BPL) have launched a public take over offer for all Kamps’ listed shares. After the acquisition, Barilla and BPL will have joint control over Kamps.
Barilla is active in the production and sale of pasta and pasta sauce products, bakery products (bread, bread substitutes and cakes) and ice cream. While most of the company’s bakery operations are centred in Italy, Barilla’s Wasa subsidiary is a leading crispbread manufacturer in several European countries, including Germany. Barilla acquired the Wasa brand in 1999, a deal which was examined by the German cartel office.
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By GlobalDataKamps makes bakery products (bread, bread substitutes and cakes) in a number of European countries, including Germany, the Netherlands and France. Among the brands it owns are Lieken Urkorn and Golden Toast. The Lieken Urkorn brand comprises a range of bread, bread substitute and cake products, including a number of crispbreads.
The EC’s market investigation showed that the activities of Barilla and Kamps are largely complementary. However, competition concerns arose in the German market for crispbread, where Lieken Urkorn is one of a few challengers to the market-leading Wasa brand. The only other significant competitor with branded products is Brandt’s “Burger” division, a leading former East German crispbread brand which is, however, virtually unknown in western Germany.
The EC considers that the divestiture of Kamps’ crispbread business, which accounts for only a small fraction of Kamps’ total turnover, removes the overlap between the parties’ activities in the German bread substitutes market and thus resolves the competition concerns.
The proposed take over was notified to the EC for regulatory approval on 8 May. The deadline was extended to 25 June after Barilla submitted undertakings.
