EC clears Nordfleisch acquisition
Dutch group Best Agrifund has been cleared by the European
Commission. The merger creates the second largest meat company in
Europe after Danish Crown.
The European Commission said that the merger, which affects mainly the Dutch and German markets, will not lead to the creation or a strengthening of a dominant position. It said that although the two companies are strong players in some markets, it was assured that the merger would not lead to competitive concerns.
This follows months of investigation in all affected markets. In some cases it was found that the parties operate on a national level, but the overlaps in business concerns were not deemed significant.
The EU also considered separately the impact of the deal on each possible customer group of meat products, such as supermarkets, caterers, and butchers.
The deal includes the purchase and slaughtering of pigs and cattle and the collection and processing of different slaughter plant byproducts for different end uses. Both Nordfleisch and Best Agrifund are active in the purchase, slaughtering and sale of pigs and cattle, the sale of fresh and processed meat, trading of livestock and meat, and the processing of animal byproducts, including plasma and haemoglobin.
The investigation of the markets where the parties' position is significant revealed that alternative disposal channels for competing slaughterhouses and a variety of purchase options for customers and competitors will remain after the merger.
As a result of its investigations, the European Commission saw fit to declare the transaction compatible with the Common Market.
Prior to Nordfleisch, Best Agrifund acquired in 2003 the Dutch slaughter business Dumeco and the German slaughterhouse Moksel. It has acquired control of four companies active in the processing plant byproduct businesses within the last three years.
Dutch-based Best Agrifund is active mainly in Germany but also has operations in the Dutch and Belgian markets for industrial processing of abattoir by-products and carcasses and the production of gelatine. Through its subsidiary Rendac, Best Agrifund holds the sole licence from the Dutch government to process high risk animal by-products in the Netherlands.
