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Acquisition of Aarhusegnens Andel (AAA) by Dansk Landbrugs Grovvareselskab (DLG) and Danish Agro approved, subject to conditions

26. februar 2010

The Chairmanship of the Competition Council and the Director General of the Danish
Competition Authority approved under the Danish merger regulation the acquisition of Aarhusegnens Andel by Dansk Landbrugs Grovvareselskab (DLG) and Danish Agro. The decision is conditional upon the divestment of parts of Aarhusegnen’s production and storage facilities.

Director General of the Competition Authority Agnete Gersing:

I am very pleased that we succeeded in finding a solution, which ensures that the mergers do not significantly impede effective competition on the animal feeds market. A weakened competition would have resulted in higher costs for the farmers and consequently higher prices for the consumers.

The competition authorities’ role is to asses the impact of the mergers on competition. However, throughout the process we were aware of the fact that the parties were in need of a fast solution and we made every effort to examine the mergers as quickly as possible. Since 1 February, when Aarhusegnens Andel suspended its payments, we have, literally, been working nonstop on the case.

DLG’s and Danish Agro’s acquisition of Aarhusegnens Andel was notified to the Danish Competition Authority on 27 January 2010. Aarhusegnens Andel was failing. The mergers result in a division of Aarhusegnens Andel into smaller units, of which significant parts are taken over individually by DLG and Danish Agro.

See the facts of the mergers

For further information, please contact Director General Agnete Gersing (+45 72 26 80 01) or Head of Unit Søren Bo Rasmussen (+45 72 26 80 22).