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EC approves Arla Foods' acquisition of Milch-Union Hocheifel

Arla Foods has been given the go-ahead to acquire Milch-Union Hocheifel.

01 October 2012

Merger and acquisition advisors at the European Commission (EC) have given their approval to the acquisition of Milch-Union Hocheifel by Arla Foods.

This follows the EC's recent green-lighting of the merger between Arla Foods and Milk Link, which will see the Devon long-life milk processing centre owned by Milk Link being divested.

According to the EC, the acquisition of Milch-Union Hocheifel would not cause any competition concerns, nor would it damage the market structure in relevant sectors.

Specialists at the Commission examined the potential impact the transaction would have in a number of different countries, including across the European Union and in Greece, Denmark, Sweden, Greece, Germany and the UK.

While Milch-Union Hocheifel does not own any milk-processing plants outside of Germany, it has subsidiary companies in Belgium, Luxembourg and France.

The EC must assess all acquisitions and mergers that deal with firms with turnovers above predetermined thresholds, although the majority of deals its merger and acquisition consultants examine are cleared following a routine review.

Posted by Edel Quinn

Source: EC press release, September 28th

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