EU Commission Approves Ingman Foods Acquisition by Arla
The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of Ingman and Arla were very limited as the companies were focused on different national markets.
16/01/07 The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Ingman Foods, a Finnish supplier of dairy products, by the Swedish company Arla. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Arla is a wholly owned subsidiary of the Danish dairy cooperative, Arla Foods amba, owned by Swedish and Danish farmers. Arla is active in the production and sale of dairy products, mainly in Denmark, Sweden and the United Kingdom. Ingman Foods is a Finnish dairy company, active in the supply of dairy products, mainly in Finland.
The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of Ingman and Arla were very limited as the companies were focused on different national markets. The Commission’s examination also showed that, for the products concerned, in particular dairy products such as milk, cream, yogurt and cheese sold primarily on the Finnish market, the combined entity would continue to face strong, effective competition from other companies active in the sector.
Arla Foods said on Monday that it was in advanced talks that could lead to its main shareholder offering 71 pence a share for the remainder of the company. Arla Foods said in October it was in talks with Swedish-Danish co-operative Arla Amba, which already owns 51 percent of the UK group. Discussions which may lead to a recommended cash offer at a price of 71 pence per Arla Foods UK Plc share are at an advanced stage," the Danish giant said in a statement. A deal at that price would give a valuation of 430 million pounds for Arla UK, which was formed in 2003 when the Danish-Swedish cooperative merged its UK business with Britain's Express Dairies.
