Campina, the Dutch dairy group, has admitted it may have to sell parts of its business in order to get EU clearance for its planned merger with Friesland Foods.
Go deeper with GlobalData
The European Commission has embarked on an in-depth investigation into the proposed deal, which would create one of the world’s largest dairy companies with sales of EUR9.1bn (US$14.4bn).
The probe comes after the Commission said an initial study into the potential impact of the proposed deal on competition in the dairy sector had “raised serious doubts” over whether the merger would be compatible with EU rules.
The Commission has concerns over competition in fresh dairy, cheese and industrial ingredients and said it would spend three months analysing the deal and its impact on the sectors.
Campina told just-food today (18 July) that the Commission’s move came as “no surprise” but, when asked if the company would offload parts of its business to get the green light from the EU, a spokesperson said: “It could be an option but we have to wait until the EU’s final conclusion in November. It is too early to say anything about that.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe Commission has defended its decision and said it would issue a verdict on 24 November.
Competition Commissioner Neelie Kroes added: “At a time of rising food prices, consumers deserve protection from any reduction of competition that runs the risk of pushing prices up in this sector. That appears to be a real risk with this proposed merger, and an in-depth investigation is therefore necessary.”
Officials at Friesland Foods could not be reached for immediate comment.
