Savencia Fromage & Dairy, formerly Bongrain, has sold its minority stake in German organic dairy Andechser Molkerei Scheitz to comply with a ruling from the country's competition regulator.
The 24.8% shareholding has been sold to companies controlled by the Scheitz family, which founded Andechser at the beginning of the last century. The regulator's investigations had focused on Savencia's integration of Andechser and another organic dairy, Söbbeke, which are the two largest in Germany. Savencia purchased shares in Söbbeke in 2011 and 2013 and owns 90% of its capital.
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In a statement, the Bundeskartellamt said Savencia had only succeeded in having the initial Söbbeke transaction in 2011 cleared by submitting incorrect information. This led to the regulator initiating divestiture proceedings and carrying out extensive investigations.
"The two dairies achieve joint market shares of well over 50% with the different products of the so-called white line, in particular organic fruit yoghurt and natural yoghurt as well as organic fruit quark and organic drinks. The former merger significantly impeded effective competition on several markets," it said.
In order to avoid the dissolution of the merger between Savencia and Söbbeke, the French group offered to relinquish its stake in Andechser, which has led to the regulator ending divestiture proceedings.
Contacted by just-food, a Savencia spokesperson confirmed the sale of the stake but declined to elaborate further.
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By GlobalData"We are in close contact with the Bundeskartellamt and it is not our wish to comment on an ongoing case."
Savencia could be liable to a fine under German competition law for failing "intentionally or negligently … to notify a concentration correctly and completely".
