Competition Council authorizes Lactalis Group takeover of Covalact and Lactate Harghita

Competition Council authorizes under some conditions the Covalact and Lactate Harghita takeover by Lactalis Group.

The Competition Council analyzed if the transaction can lead to the consolidation of Lactalis group position on the production market and butter sale at national level, having the effect of reducing the choices of consumers. The transaction might have led to the increase of butter prices.

The transaction was authorized with the condition of Lactalis group respecting the commitment of transfering the butter brand “La Dorna” to a company with relevant industrial competence, independent of Lactalis, for a certain period of time.

Also, the company will undergo a rebranding process, selling the butter under another name.

The group will be obliged to provide to the Competition Council information on the companies that want to take over the butter brand and obtain its prior agreement.

During the transaction analysis, the Competition Council asked the interested parties (processing, farmers, profile associations- Agricultural Producers Association League from Romania) to present observations or opinions regarding the notified economic concentration operation and the commitments proposed by Lactalis.

The law firm “Leroy si asociatii” advised Lactalis on the Covalact transaction.