EU probes merger of Campina and Friesland Foods

18th July 2008, Comments 0 comments

The European Competition Commissioner will launch an inquiry into the planned merger of Dutch dairy producer Campina and Friesland Foods.

18 July 2008

BRUSSELS - European Competition Commissioner Neelie Kroes is launching a wide-ranging inquiry into the planned merger of dairy producer Campina and Friesland Foods.

The commission fears the resulting company might be too powerful a force in the Dutch dairy sector, making fair competition impossible.

Kroes, a Dutch citizen, says the move could drive the price of dairy produce higher at a time when food prices in general are already going up.

If the merger goes ahead, the Campina-Friesland Foods company would have an annual turnover of more than EUR 9 billion. The companies say the merger is necessary to face a possible increase in competition due to further liberalisation in the European dairy sector.

The European Commission inquiry is set to be completed by the end of November.

[Radio Netherlands / Expatica]

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