The EU Commission has ruled that the agreed takeover of US company WhiteWave by Danone can proceed as long as the latter divests a significant part of its Belgian ‘growing-up milk business’ for toddlers.
Brussels fears a failure to do so would leave Nestlé as Danone’s only significant competitor for this product sector in Belgium.
The takeover, estimated to be worth about $10 billion, adds the best-selling US soy-milk brand Silk to Danone’s portfolio.
In response to the request, the French dairy giant has offered to offload a 'large part’ of its growing-up milk division in Belgium.
‘The divestment entirely removes the overlap between the companies in Belgium on the overall 'growing-up milk' market, comprising both dairy and plant-based products, as well as on the sub-market only for plant-based products,’ the Commission said.
It added that it sees ‘no competition concerns’ with regard to other products included in the deal, such as yoghurt and dessert SKUs.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.