The European Commission has cleared
under the EU Merger Regulation the proposed acquisition of the
hazelnuts trading and processing company Oltan by Ferrero International
S.A. of Luxembourg. Ferrero is a rival of Oltan, through Stelliferi, in
the procurement and supply of hazelnuts and, at the same time, a
customer of Oltan. The Commission concluded that the transaction would
not raise any competition concerns, in particular because the merged
entity will continue to face sufficiently strong competition after the
merger and customers will still have sufficient alternative suppliers in
all markets concerned.
The Commission examined the
effects of the merger on competition in the markets for (i) the
procurement and supply of hazelnuts, (ii) the manufacturing and sale of
chocolate confectionery and (iii) the manufacturing and sale of sweet
spreadable products.
The operation will create the
world's largest hazelnuts supplier, with a significant market position
for hazelnuts grown in Turkey, which accounts for around 70% of the
worldwide production. Ferrero, the largest purchaser of hazelnuts
worldwide, uses hazelnuts as an ingredient in the manufacturing and sale
of chocolate confectionery, including products such as Kinder Bueno,
Kinder Surprise, Rocher and Mon Cheri, and in the manufacturing and sale
of sweet spreadable products (Nutella).
However, the Commission's
investigation found that the operation would not lead to competition
concerns as customers will still have sufficient alternative hazelnuts
suppliers, such as Progida, Ozgun, Balsu, Durak, Gursoy, Yavuz and other
international traders. In addition, some competitors have recently entered the market or strengthened their presence.
The transaction was notified to the Commission on 7 August 2014.
Background
Ferrero is the holding company
of the Ferrero group, a producer of foodstuffs, active worldwide in the
manufacturing and sale of confectionery and other sweet products (e.g.
chocolate confectionery, candies, snacks and sweet spreadable products),
and in the purchase and commercialization of edible nuts, and in
particular hazelnuts, all over the world.
Oltan is a group of companies
active in the purchase, processing and commercialization of hazelnuts,
mainly of Turkish origin, all over the world.
