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Publish Date : 15-Apr-2013

The European Commission has authorised under the EU Merger Regulation the proposed acquisition by the leading Dutch dairy cooperative FrieslandCampina of two Dutch companies: Zijerveld & Veldhuyzen B.V., a specialised cheese wholesaler, and Den Hollander Food B.V., a packaging services provider (together "the target"). The clearance is conditional upon the implementation of a package of commitments offered by FrieslandCampina. The Commission had concerns that the transaction, as originally notified, would have significantly reduced competition on the market for the production and sale of semi-hard goat cheese in the Netherlands. The commitments address these concerns as they will ensure that sufficient quantities of semi-hard goat cheese are available to third parties.

The proposed transaction, as originally notified, would have combined the two leading producers and suppliers of semi-hard goat cheese in the Netherlands, leading to very high market shares. While FrieslandCampina is the top Dutch producer, the target has an exclusive supply arrangement with Amalthea van Dijk B.V., a Dutch cooperative of goat farmers which is the country's second biggest producer of this type of cheese.

The Commission's investigation indicated that customers who buy semi-hard goat cheese in the Netherlands show a clear preference for cheese produced in the Netherlands from Dutch milk. This means that imports are limited and would therefore not constitute a sufficient competitive constraint on the merged entity. Furthermore, competition from alternative suppliers within the Netherlands would have been limited.

In order to address these concerns, FrieslandCampina undertook to amend the existing supply arrangement between the target and Amalthea so that competitors have access to a significant part of the goat cheese produced by Amalthea. In addition, FrieslandCampina will stop outsourcing the production of semi-hard goat cheese to Amalthea, thereby ensuring that such production capacity will be available to third parties. At the request of third parties, FrieslandCampina will also make available raw goat milk for the production of semi-hard goat cheese.

In view of the remedies proposed, the Commission concluded that the transaction, as modified, would not significantly reduce competition. This decision is conditional upon full compliance with the commitments.

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