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The Danish Competition Council Approves a Modification of Commitment by Arcus-Gruppen Holding AS to Sell the Aquavit Brand ''Brøndums''

29. maj 2013

On September 26 2012 The Danish Competition Council (“DCC”) cleared the acquisition of Pernod Ricard Denmark A/S by Arcus-Gruppen Holding AS (“Arcus”).

The DCC’s decision was conditional on the sale by Arcus of the aquavit brand “Brøndums”. In light of this commitment, the DCC concluded that the proposed transaction would not significantly impede effective competition in the affected markets.

Regardless of who buys Brøndums it will be necessary for Arcus and the buyer to make an agreement where Arcus for a transitional period of time will produce and supply Brøndums aquavits to the buyer and cooperate in transferring the production of Brøndums aquavits to the buyer.

A transitional agreement between Arcus and the buyer will serve two purposes. Firstly the agreement is provides for the technical transfer of the production of Brøndums aquavits and related knowledge to the buyer and thus securing the technical quality of Brøndums aquavits. Secondly the agreement will provide for the uninterrupted supply of bottled Brøndums aquavits to the market and the customers.

As part of the commitment to sell the brand Brøndums Arcus undertook not to make, sustain or continue agreements with Altia concerning supply of pure alcohol, about blending, bottling, supply, distribution, marketing or sale of aquavit in Denmark.

A modification of the commitment makes it possible for Arcus to make a transitional agreement with Altia, if Altia buys Brøndums.

The DCC considers that there are sufficient grounds for accepting a modification of the commitment and that the modified commitment is just as suited to ensure effective competition on the relevant markets.