Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves cement producer, aviation fuel supplier acquisitions; opens in-depth investigation into coffee joint venture, (Dec 15, 2014)

The European Commission (EC) today cleared two acquisitions and subjected a joint venture to a closer review. The proposed acquisition of Lafarge by Holcim was conditionally approved, the EC announced. Both companies are active worldwide in the manufacture and supply of cement, ready-mix concrete, aggregates and other construction materials. Approval was conditioned upon the divestment of Lafarge businesses in Germany Romania and the United Kingdom and of Holcim operations in France, Hungary, Slovakia, Spain and the Czech Republic. The assets to be divested include ready-mix concrete plants, aggregates quarries, integrated cement plants, grinding stations, as well as cement terminals. Services include central functions (such as management, IT services, research and development) and alternative fuel resources relating to the use of processed waste as an alternative to conventional fuel to reduce operational costs.

Holcim, based in Switzerland, is a global producer of building construction materials including cement, aggregates, ready-mix concrete, and asphalt. Lafarge is based in France and is also active worldwide in the supply of cement, ready-mix concrete, aggregates and other construction materials.

Oil and gas industry acquisition. BP's proposed acquisition of aviation fuel supplier Statoil Fuel & Retail Aviation (SFRA) of Norway was conditionally approved by the EC, according to a statement released today. The activities of United Kingdom-based oil and gas company BP and SFRA overlap in the provision of fuel to airplanes at the airports of Stockholm, Gothenburg, Malmö (all in Sweden) and Copenhagen (Denmark). The proposed transaction, as originally notified, would have combined two large into-plane suppliers of aviation fuel at these airports and would have reduced the number of suppliers from 3 to 2 at Stockholm, Gothenburg and Malmö and from 4 to 3 in Copenhagen, according to the EC. To address these concerns, BP has committed to the divestment of SFRA's activities at the airports of Stockholm, Malmö, Gothenburg and Copenhagen.

Coffee joint venture. Also today, the EC disclosed that it had opened an in-depth investigation into a proposed joint venture (JV) between two of world's leading coffee manufacturers—Douwe Egberts Master Blenders 1753 B.V. (DEMB) of the Netherlands and U.S.-based Mondelēz International Inc. The parties to the JV were unable to satisfy competition concerns with their proposed commitments. The EC has suggested that the transaction could significantly reduce competition for roast and ground coffee in France, Denmark and Latvia, as well as for filter pads in France and Austria. DEMB and Mondelēz are also the leading manufacturers of Nespresso compatible capsules sold by retailers in a number of countries (Nespresso's own capsules are not sold through retailers). This concentration of key local brands in the hands of one company increases the likelihood of price increases for retailers and ultimately for consumers.

Companies: Lafarge; Holcim Ltd.; Douwe Egberts Master Blenders 1753 B.V. ; Mondelez International Inc. ; Statoil Fuel & Retail Aviation; BP plc

News: AcquisitionsMergers Antitrust