23. oktober 2013
On October 23th 2013 the Danish Competition Council (“DCC”) approved Vilomix Holding A/S’ (Vilomix) acquisition of A/S Hatting-KS (Hatting). The DCC decision is conditional on a fix-it-first commitment, where Vilomix sells Hatting-Vet ApS (Hatting-Vet) by closing to 3S, a buyer approved by DCC.
Vilomix, which is controlled by Danish Agro, produces mineral mixture, vitamins and premix. Through its subsidiaries sells veterinary drugs to production animals and package goods to farmers.
Hatting-KS, which is owned by Danish Crown and Tican, produces and sells pig semen and sell package goods to farmers. Through its subsidiary Hatting-Vet sells veterinary drugs to production animals.
Vilomix and Hatting-KS are both active on the separate retail markets for (i) veterinary drugs to production animals and (ii) package goods to farmers. Hatting-KS is also active on the market for production and sale of pig semen.
DCC had concerns regarding the acquisition because it could inhibit the effective competition significantly in the market for retail sale of veterinary drugs to production animals.
DCC assess that Hatting-Vet has had a significant role relative to the competition in the market for retail sale of veterinary drugs to production animals. The company has in just three years maintained a market share on 15 percentage and competed aggressively on prices.
Vilomix will, after the sale of Hatting-Vet to 3S, acquisition the remaining part of Hatting-KS, i.e. the production and sale of pig semen and the retail sale of package goods to farmers.
The buyer of Hatting-Vet, 3S, is a trading company with strong connections to the agricultural sector, and is owned by Danish Pig Producers and pig- and milk farmers.
In order to address the Council’s concerns, Vilomix submitted a commitment to sell Hatting-Vet to 3S at closing. Vilomix also is not allowed to buy any part of Hatting-Vet for a period of 10 years.
The Council concluded that the commitments were suitable to remove the competition concerns identified.