24.7.2018
The Finnish Competition and Consumer Authority (FCCA) is initiating further proceedings with regard to an acquisition whereby Lantmännen Agro Oy will acquire Raisioagro Oy's feed production business and its retail operations for the related and other production inputs used in the agricultural sector.
Lantmännen Agro Oy is an agricultural retailer operating in Finland and owned by Lantmännen Ekonomisk Föreningen. Lantmännen Agro Oy offers its customers four extensive solutions based on goods and services: cultivation programmes, livestock farm programmes, the Machinery Business model, and the grain trade. The company has a total of 41 chain entrepreneurs operating from 76 outlets.
Raisioagro Oy is part of Raisio Group, which operates in the food and feed business. Raisioagro Oy is largely focused on the production of cattle and fish feeds, but also produces and sells reindeer, horse, sheep and game feed on a small scale. Raisiagro Oy also operates as a seller of e.g. fertilisers, plant protectants, and fuel and lubricants.
On the basis of the FCCA’s preliminary assessment, the acquisition may have adverse effects, particularly on the retail markets for silage packaging products and cattle feed. Based on observations regarding the market structure and the competitive situation between the parties to the acquisition and third parties, the FCCA deems it necessary to continue the investigation of the acquisition’s competitive impact.
In its further investigation, the FCCA will examine whether the planned acquisition significantly impedes effective competition in the Finnish market, or a key segment of the market. The FCCA may approve the acquisition as such, attach conditions to the approval or request that the Finnish Market Court prohibit the acquisition. According to the Competition Act, the further proceedings may not take longer than three months.
The FCCA’s decision includes business secrets of the parties involved. The decision cannot be published until the business secrets have been removed.
Further information: Research Officer Jenna Huttu, tel. +358 (0)29 505 3576, firstname.lastname@kkv.fi.
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 from Finland of at least two of the parties exceeds a combined total of 20 million euros. The FCCA will approve a corporate transaction if it has none of the harmful impacts referred to in the Competition Act. The FCCA will intervene in corporate transactions if its investigations suggest that the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position. Where necessary, notifications of acquisitions are considered in two stages. The so-called first stage takes a month at most. If the acquisition is clearly not harmful to competition, or if the harmful effects can be prevented by means proposed by the parties to the acquisition, the acquisition is approved during the first stage. If not, the FCCA decides to conduct a further investigation of the matter, during which the acquisition and its competition effects are investigated in further detail.
Read more about merger control.