On 27 September 2018, the Finnish Competition and Consumer Authority (FCCA) approved an acquisition whereby Osuuskunta Maitosuomi and Osuuskunta ItäMaito will merge. The FCCA has concluded that the acquisition will not significantly impede effective competition on the Finnish market.
Within their operating area, Osuuskunta Maitosuomi and Osuuskunta ItäMaito are responsible for the purchase and collection of raw milk, and the related operations. The main activities of the parties to the acquisition also include the ownership and management of Valio Oy. In addition, Osuuskunta Maitosuomi and Osuuskunta ItäMaito operate Valmakauppa, the retail sales of which comprise agricultural and grocery sales.
The FCCA has evaluated the merger between Osuuskunta Maitosuomi and Osuuskunta ItäMaito as a horizontal acquisition, involving the combination of two major Valio purchasing cooperatives. The FCCA has concluded that the acquisition will not significantly impede effective competition on the market for the collection and purchase of raw milk. According to the FCCA’s assessment, the acquisition will have no material impact on the competitive process on the market, since competition between producers primarily occurs between different dairy groups. Furthermore, the acquisition will not change the competitive pressures between dairy groups.
The FCCA also concludes that the acquisition will not significantly impede effective competition in the agricultural and grocery markets, in light of the market shares of the parties to the acquisition and the clearly larger size of the competitors remaining on the market.
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 Lauri Kirkkola, tel. +358 29 505 3073, 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 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.
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