26 May 2017
The Finnish Competition and Consumer Authority (FCCA) approved on 26 May 2017 the acquisition of Sörnäisten Portti Oy, to which the business operations of K-maatalous have been incorporated, by Lantmännen Ekonomisk Förening. The Finnish Competition and Consumer Authority has concluded that the acquisition will not significantly impede, as referred to in the Competition Act, effective competition in the Finnish market. The parties to the acquisition operate in the agricultural trade, but their business operations overlap only slightly, primarily with regard to the purchase of malting barley.
Lantmännen Ekonomisk Förening is a Swedish agricultural cooperative that operates in over 20 countries. Ownership in Finland by Lantmännen extends to bakery company Vaasan Oy and Oy Lantmännen Unibake Ab Finland. Lantmännen also owns part of Viking Malt Oy, which supplies the beverage and brewery industry with malts.
Sörnäisten Portti Oy is owned by Kesko Corporation, to which K-maatalous business has been incorporated. K-maatalous sells production equipment, machinery and equipment for agricultural purposes, and engages in grain trade.
The parties to the acquisition have overlapping operations in the purchase of malting barley. According to FCCA’s estimate, there will still be many buyers of malting barley on the market after this acquisition. The parties to the acquisition also have an incentive to maintain sufficient malting barley production in Finland, which restricts the possibilities of the concentration formed by this acquisition to reduce the purchase price of malting barley.
The FCCA’s decision includes business secrets of the parties involved. The decision cannot be published until the business secrets have been removed, i.e. in around two weeks’ time.
Further information: Research Officer Pontus Ranta, tel. +358 (0)29 505 3747, email email@example.com
According to the Competition Act, the FCCA must be notified of the transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover of at least two of the parties resulting from Finland exceeds 20 million euros for both. FCCA approves a corporate transaction if it has no harmful impacts referred to in the Competition Act. FCCA will intervene in corporate transactions if its investigations suggest that the acquisition may significantly impede effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position.
Read more about merger control