:. Food Industry News

Categories: Mergers and Acquisitions

EU Extends Probe of Dutch Dairy Group Merger

Source: Reuters
03/11/2008

Brussels, Nov 3 - The European Commission extended its in-depth investigation on Monday into plans by Dutch dairy groups Friesland Foods and Campina to merge, saying the deal could raise cheese and dairy product prices.

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The EU executive extended its probe by 15 working days, it said in a statement, but did not give details for its decision.

The planned deal would create one of the world's largest dairy companies, with combined sales of 9.1 billion euros ($11.63 billion).

Earlier this month, the EU antitrust watchdog exteded its investigation until Nov. 24, after expressing its concerns about the effect of the proposed deal on the prices of fresh dairy products and cheese.

The Commission, executive arm of the European Union, said it also had concerns about desserts, flavored drinks and cream and industrial products sold to food processing and pharmaceutical companies.

Those products included spray-dried emulsions used in bakery applications and pharmaceutical lactose.



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