Mergers - Case 17

Competitive assessment of a planned merger in the baking ingredients industry

Assessment of a planned merger in the backing ingredients industry. E.CA was asked to provide a preliminary assessment of a planned "3 to 2" merger in the baking ingredients industry. The critical questions were whether the competitive constraint of private labels as well as substitute products from neighbouring markets would be sufficient to keep prices low post-merger. E.CA concluded that due to the high market shares in the branded segment and the closeness of the merging parties, it would be highly likely that the competition authority would engage in an in-depth investigation. The merger was not notified.