EC: Lactalis can take over Parmalat

Parmalat logoThe European Commission has given French dairy producers Lactalis permission to take over its Italian competitors Parmalat. The French already have 28.97% of Parmalat's shares since March and now offer 2.6 euro for each share they do not yet own.

Europe will not impose conditions

The European Commission does not interfere because “the proposed transaction would not significantly modify the structure of the relevant markets as the increments in market shares are negligible and a number of credible competitors would continue to exercise a competitive constraint on the merged entity”.

The end of a difficult month

The Commission's permission ends a turbulent month, in which Lactalis's first bid was refused by Parmalat and Intesa Sanpaulo, an Italian bank holding 2.4% of Parmalat, staged a failed attempt to form an Italian front to keep the French out. After the Commission's approval, the bank has agreed to “probably” sell its shares to Lactalis anyway.


The conditional takeover only takes place if Lactalis can acquire 55% of Parmalat's shares. The two companies would become the world's biggest dairy producer in the world, with a 14 billion euro turnover.

 

Parmalat logoThe European Commission has given French dairy producers Lactalis permission to take over its Italian competitors Parmalat. The French already have 28.97% of Parmalat's shares since March and now offer 2.6 euro for each share they do not yet own.

Europe will not impose conditions

The European Commission does not interfere because “the proposed transaction would not significantly modify the structure of the relevant markets as the increments in market shares are negligible and a number of credible competitors would continue to exercise a competitive constraint on the merged entity”.

The end of a difficult month

The Commission's permission ends a turbulent month, in which Lactalis's first bid was refused by Parmalat and Intesa Sanpaulo, an Italian bank holding 2.4% of Parmalat, staged a failed attempt to form an Italian front to keep the French out. After the Commission's approval, the bank has agreed to “probably” sell its shares to Lactalis anyway.


The conditional takeover only takes place if Lactalis can acquire 55% of Parmalat's shares. The two companies would become the world's biggest dairy producer in the world, with a 14 billion euro turnover.

 

Questions or comments? Please feel free to contact the editors


Plenty of interest for onerous Abercrombie & Fitch

26/05/2017

Fashion company Abercrombie & Fitch suffered a huge loss once more in the first quarter of 2017. Despite that, the board said there is plenty of interest for a possible acquisition.

Samwer brothers sell half of Zalando shares

26/05/2017

German brothers Samwer have sold almost half of the shares their investment firm, Global Founders, still holds in Zalando. The brothers’ share in the German online fashion retailers is now less than 5 %.

Minor first quarter turnover increase for Foot Locker

23/05/2017

Shoe chain Foot Locker’s first quarter turnover grew 0.7 % to 2 billion dollars (1.8 billion euro), but its net profit did drop from 191 to 180 million dollars (160 million euro).

Uniqlo makes fast fashion even faster

23/05/2017

Japanese Fast Retailing, fashion chain Uniqlo’s parent company, has managed to drastically speed up its production cycle. From now on, it will only take thirteen days to bring a design to the stores.

Patrice Louvet is Ralph Lauren's new CEO

19/05/2017

Fashion label Ralph Lauren has appointed Patrice Louvet as its new CEO. He will succeed Stefan Larsson, who decided to leave the company following a difference of opinion with founder and chairman Ralph Lauren.

Scotch & Soda continues French conquest

18/05/2017

Dutch fashion brand Scotch & Soda will soon open boutiques in Dijon and Paris, to add to its nine boutiques in France.

Back to top