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Dutch watchdog blocks Zwanenberg’s planned takeover of Unox
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The Dutch competition authority has blocked Zwanenberg’s planned acquisition of Unox, citing concerns that the deal would concentrate supply of sausages and long-life soups and could lead to higher prices for supermarkets.
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The Netherlands’ competition authority has refused to approve Zwanenberg’s planned takeover of Unox, warning that the deal could leave the food company with too much power over key supermarket products and allow it to charge retailers higher prices.
The Authority for Consumers and Markets (ACM) says the takeover would make Zwanenberg almost the only major supplier of smoked and cooked sausages in Dutch supermarkets, including frankfurters. It also says the company would gain too strong a position in the market for long-life soups.
The concern is that Zwanenberg could use those positions to demand higher prices from supermarkets. The report does not give details of the companies’ response or say what happens next to the proposed deal.
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