France’s competition authority has conditionally approved the planned merger of the agricultural cooperative groups Euralis and Maïsadour.
The clearance of the deal proposed last year is based on commitments given by the two companies aimed at addressing competition concerns.
In a statement, the Autorité de la Concurrence said it “cleared” the transaction following an investigation that included consultations with third parties such as farmers, rival operators and food retailers.
The regulatory review highlighted “several risks to competition” in markets where the two groups compete closely in south-west France.
Autorité concluded the merged entity would hold a “key position” in the sale of fattened duck products such as foie gras and duck breasts, which it said may lead to price increases for consumers in both the retail and foodservice channels.
The regulator also flagged risks for farmers, warning some could be left with fewer “alternative sales outlets” for cereals, oilseeds and protein crops. It also raised concerns about reduced options for sourcing animal feed.
Euralis and Maïsadour offered “three sets of commitments” to mitigate the concerns identified by the Autorité.
The cooperatives committed to transfer production of at least two million fattened ducks to competitors by 17 July 2031. The measure includes the divestment of the Canadour production business and the Sarrade foodservice brand.
They also pledged to “facilitate the acquisition” by competitors of farms owned by member producers of the new entity.
In crop collection, the groups have agreed to divest 12 collection facilities — silos or platforms — to buyers approved by the Autorité.
Maïsadour has also agreed to sell its animal-feed factory in Pomarez in the Landes department in south-west France to an Autorité-approved competitor.
The Autorité added compliance will be under “close monitoring”, with one or more independent trustees appointed to oversee the implementation process. The watchdog added it would be “particularly vigilant” on the transfer of production capacity to competitors within five years.
Euralis and Maïsadour first unveiled plans to combine their businesses in March last year, after an earlier attempt to merge operations in foie gras, salmon and direct sales was abandoned in 2023 due to disapproval from the competition watchdog.
The merger will create an agricultural entity with turnover of around €3bn ($3.2bn), the cooperatives said last year when they announced the plan.
Autorité president Benoît Cœuré said in the statement: “The transaction shows that, with concrete, targeted and tailored commitments, agricultural cooperatives can merge, while preserving the effective functioning of competition across the entire agricultural and agri-food value chain, from primary production through to consumers.”
Euralis, based in Lescar, and Haut-Mauco-headquartered Maïsadour, collectively represent more than 10,000 member farmers across crop production, poultry, and the animal nutrition sectors.
