14 Jan - Fazer Bageri's acquisition of Lantmännen Farskbröd fresh bread business went ahead yesterday after receiving approval from the Swedish Competition Authority.
Competition officials gave the go-ahead as the merger would still mean there were “two strong competing players at the national level after the acquisition” in the shape of Pagen and Polar, said a statement from Lantmannen.
Lantmannen said it had decided to sell its Swedish fresh bread business “as part of its strategy to create a focused and profitable company”.
“The former Lantmännen fresh bread business has now come into the right hands: those of Fazer, which will continue to emphasize the bakery operation,” said Lantmännen President and CEO Per Strömberg.
Fazer Bageri CEO Per Sandberg said: “I’m delighted that the response to the deal has been so positive, at both Fazer Bageri and Lantmännen Färskbröd, and that now we can begin integrating the companies and continue to build one of Sweden’s leading bakery companies.”
A statement from the Swedish Competition Authority said: “There will still be two strong competing players at the national level after the acquisition – Pagen and Polar. In addition, there are several local and regional bakeries with a strong position in their respective geographic markets. Customers also have strong purchasing power in relation to the bakeries in the form of the large grocery chains.
“Thus the Swedish Competition Authority has established that the current level of company concentration will not result in the creation or reinforcement of a dominant position that could substantially hinder the existence or development of effective competition in Sweden.”