Commission Clears Acquisition of Parts of AR Industrie Alimentari by Princes

The investigation showed that the overlaps between the merging parties' activities in these markets would not raise competition concerns due to the small increments in market shares which derive from the ARIA assets' single supply relationship in the UK with only one retailer.

6 April 2012 --- The European Commission has cleared under the EU Merger Regulation, the proposed acquisition of sole control over certain assets of the Italian food company AR Industrie Alimentari S.p.A. by the UK food and drinks producer Princes Limited. The Commission found that the proposed transaction would not raise competition concerns, because it will not significantly alter the market structure.

The Commission examined the competitive effects of the proposed acquisition in the markets for various pre-packaged tomato-based cooking ingredients and pulses in the UK. The Commission also assessed the vertical links between these markets and the upstream activities of the ARIA assets in the processing of tomatoes.

The investigation showed that the overlaps between the merging parties' activities in these markets would not raise competition concerns due to the small increments in market shares which derive from the ARIA assets' single supply relationship in the UK with only one retailer. The investigation also confirmed the presence of alternative suppliers in the markets concerned.

In relation to the vertically affected markets, the Commission found that the transaction would not cut off the access of the merged entity's rivals to processed products due to the presence of sufficient alternative suppliers. The merged entity's main rivals would also continue to have access to a sufficient customer base for their production.

The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

The proposed transaction was notified to the Commission on 29 February 2012.

Princes is active in the production, marketing and distribution of food and drink products principally through the retail grocery channel and mainly in the UK. It is ultimately owned by Mitsubishi Corporation.

Mitsubishi Corporation is Japan's largest general trading company active in various industries including energy, metals, machinery, chemicals, food and general merchandise. It is active in approximately 80 countries worldwide.

The ARIA assets comprise certain assets, agreements, equipment, inventory and liabilities which will be contributed by AR Industrie Alimentari S.p.A. to a newly created company, Princes Industrie Alimentari S.r.L, that will be active in the production, marketing and distribution of food products, primarily pre-packaged tomato-based cooking ingredients.