Nutreco and Stolt-Nielsen joint venture approved

14/04/05 The European Commission has cleared under the EU Merger Regulation the proposed transaction whereby the Dutch company Nutreco Holding N.V. and the Luxembourg company Stolt-Nielsen S.A. intend to create a full function joint venture, Marine Harvest N.V., incorporating the fish farming activities of both companies. 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 or it and has therefore approved the concentration.

Nutreco is a company whose activities relate to food for human and animal consumption and is present at various stages of the fish, poultry and pork production chains. Stolt-Nielsen’s activities relate to transportation services, fish farming, off-shore services and services for the procurement process in the maritime transport sector.

The Commission’s examination was mainly focussed on the EEA market for the production and sale of farmed salmon, where the new entity will be the most important player. As the market shares of the two parties are moderate and because the farmed salmon market remains rather fragmented with other significant competitors, the transaction does not give rise to serious competition concerns. In addition, the existing vertical relationship between the joint venture and Nutreco, regarding the Norwegian and UK market for aqua feed for farmed salmon, will not lead to any risk of other companies being excluded from the market.