5 July 2002
On 4 October 2002, the FCA conditionally approved an acquisition whereby Lännen Tehtaat Oyj acquired control of Avena Oy. The Avena Group e.g. includes Suomen Rehu Oy producing industrial feed and Avena Siilot Oy specialising in the processing and stocking of grain.
Two conditions were attached to the acquisition: that the concentration give up its share in a domestic beet cut and its plan to acquire a 35% holding in Avena Siilot.
The second phase of investigations was commenced because Suomen Rehu has obtained a firm position in the market of industrial feed in Finland. With market shares of over 60%, Avena Siilot governs the stocking and stockpiling services in the import and export trade.
Barring conditions, the acquisition would have resulted in the domestic sugar beet becoming a sole commodity of the concentration and the creation of a dominant position in the market of the manufacture of mineral feed. Additionally, the acquisition would have led to the creation of joint dominance with another strong industrial feed operator Raisio Yhtymä Oyj. E.g. in cow and pork feed the joint market share of the concentration and Raisio would have amounted to over 70%.
The condition concerning the beet cut, imposed as prerequisite for the approval of the acquisition, is intended to ensure that the feed plants competing with the concentration are not dependent on it in the purchase of the beet cut. Giving up the holding in Avena Siilot is intended to decrease the competitive concerns involved with maintaining a dominant position and the competitors’ dependency on the concentration in the import of animal feed.
Director Juhani Jokinen
Senior Research Officer Jaana Hautala
Senior Reseach Officer Tiina Saarinen