IP/07/1641
Brussels, 31st October 2007
Mergers: Commission approves proposed acquisition of joint control over Dailycer Group and DVG by OEP and MSP Stiftung
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of joint control over Dailycer Group of France and DVG of Germany, both ready-to-eat cereal producers, by private equity fund OEP and MSP Stiftung. As a result of the proposed merger, Dailycer Group and DVG would combine their activities in a full-function joint venture. After examining the proposed concentration, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
The French Dailycer Group is controlled currently by One Equity Partners II ("OEP"), a private equity fund, ultimately controlled by J.P. Morgan Chase & Co, a global financial services firm. The German De-Vau-Ge Gesundkostwerk ("DVG") is controlled currently by MSP Stiftung, a foundation under German law, holding certain assets for the benefit of the members of the Seventh-Day Adventists Church.
Both Dailycer Group and DVG produce ready-to-eat cereals and cereal bars that are mainly sold under retailers' own labels.
The Commission’s examination of the market showed that the two cereal producers have a different geographic focus. Whereas Dailycer sells mainly in France, Spain and the UK, DVG is focusing to the German market. Even in the countries where both companies are selling, namely Belgium, Italy and Spain, they cannot be considered as close competitors.
The Commission also established that the merged entity would continue to face
a number of effective competitors supplying private label cereals. Therefore the
proposed transaction would not lead to competition concerns.
Further details
on the case will be available at:
http://ec.europa.eu/comm/competition/mergers/cases/index/m94.html#m_4738
