26. februar 2010
Dansk Landbrugs Grovvareselskab (DLG) is the largest agricultural supplier to farmers in Denmark. DLG purchases grain and supplies Danish farmers all over Denmark with animal feed, feed compounds, seed grain, fertilizers, and plant protection.
Danish Agro is Denmark’s second largest agricultural supplier to farmers in Denmark. The company purchases grain and sells animal feed, seed grain, fertilizers and plant protection to farmers all over Denmark, apart from Northern Jutland.
AAA (Aarhusegnens Andel) is a cooperative society that also purchases grain and sells agricultural commodities (animal feeds, feed compounds, seed grain, fertilizers and plant protection) to farmers in the southern and middle parts of Jutland, on Funen and on Zealand.
On 26 February 2010, the merging parties proposed commitments to divest parts of AAA’s facilities to address the competition concerns of the Danish Competition Council.
The commitments include divesting parts of AAA’s production and storage facilities. The divestiture is split into two phases. In phase 1, the merging parties undertake selling AAA’s production facilities located on Aarhus Sydhavn and AAA’s warehouse and ship/port facilities located on Aarhus Østhavn through an independent Trustee. If – and only if – a phase 1 sale cannot be completed within a period of 3 months, phase 2 will be implemented. Phase 2 consists of selling AAA’s production facilities and headquarters etc. in Galten.
Important dates of the case
13 January 2010. AAA enters into a framework agreement with a consortium consisting of DLG and Danish Agro on the consortium’s acquisition of AAA.
27 January 2010. DLG and Danish Agro file the acquisition of AAA with the Danish Competition Authority. The Parties request that the merger plans be treated confidentially.
1 February 2010. AAA suspends payments, and the merger plans are made public.
1 February 2010 – 23 February 2010. The Danish Competition Authority carries out a market investigation and has continuous discussions with the parties about how to address the identified competitive concerns of the proposed merger.
25 February 2010. Due to the urgency of the matter, the Competition Council authorises its chairmanship and the Director General of the Danish Competition Authority to negotiate final commitments and to decide on the case based on those commitments.
26 February 2010. The chairmanship of the Competition Council and the Director General of the Danish Competition Authority approve the acquisition of AAA by DLG and Danish Agro, subject to conditions.