News, 11 November 2011
The FCA today approved an acquisition whereby Unilever Finland Oy acquires control of Ingman Ice Cream Oy Ab. Unilever imports ice cream products into Finland e.g. under the brand names of Magnum, Carte d'Or, Viennetta and Daim. Ingman Ice Cream manufactures ice cream e.g. under the Ingman, Kingis, Jättis, Creamy and Tofuline brands.
According to the FCA’s investigations, all the segments of the Finnish ice cream market have a strong competitor, Suomen Nestlé Oy, even after the acquisition. Suomen Nestlé Oy purchased the ice cream business of Valio Oy in 2004. In addition to Nestlé, the new concentration meets competition from the private labels of the chain stores (for example Pirkka, Rainbow, Eldorado and the products of Lidl), and to some extent from smaller ice cream suppliers.
The market power of the concentration is also limited by the fact that the majority of ice cream products is sold to the major chain stores, who have a strong position when the terms of procurement are negotiated. It is hence the FCA’s view that the concentration cannot act independently of its competitors and customers. A dominant position does not rise or be strengthened as a result of the concentration which would significantly impede competition in the Finnish ice cream market.
The FCA’s decision contains the parties’ business secrets, and it can only be published after these have been removed, i.e. in roughly two week’s time.
Senior Research Officer Susanna Suvanto
Assistant Director Timo Mattila