Mergers - Case 22

Dr. Oetker/Schwan: Appraisal of potential anti-competitive effects of horizontal merger between Dr. Oetker and Schwan in the FMCG industry

Planned merger in the fast consumer goods industry. We provided an appraisal of the potential anti-competitive effects of a planned horizontal merger, separately for two European jurisdictions, the UK and Germany. Based on scanner data, we found that the market definitions in the two jurisdictions differed due to different tastes across countries. For both jurisdictions we found, however, that own label products were part of the relevant product market and had significant market shares. We found that the market definition was relatively broad and joint market shares small. Yet, even on narrower market definitions, the merger would not cause significant competitive effects in particular due to buyer power considerations. The merger was cleared unconditionally in both jurisdictions.