PARMALAT/EUROLAT
PRESS RELEASE
PRESS RELEASE
The Authority has closed its investigation of the planned merger between Parmalat and Cirio following the latest notification
The Authority has closed its investigation into the merger between Parmalat S.p.A and Eurolat, to which Cirio has spun off its milk division. It was opened on 1 July 1999 following service of Parmalat’s notification dated 14 June 1999 of an amended plan for the merger that had originally been served on 19 March 1999, which was being investigated by the Authority and which was subsequently withdrawn on 8 June 1999.
The new merger plan differed from the one originally notified in that it contained a number of undertakings made to the Authority by Parmalat. These undertakings, which had been modified and expanded by the parties to the operation during the course of the investigation and notified on 22 July 1999, included the sale of 6 fresh milk and UHT milk brands following the conclusion of the merger, together with their respective production capacities in milk plants located in various parts of Italy, and the withdrawal from the Latium Region of the Parmalat fresh milk brand for a certain number of years.
After examining the substance of these new undertakings, the Authority ruled that they were able to prevent the merger from creating or strengthening a dominant position within the meaning of section 6 of Law no. 287/90, in a manner that would substantially distort competition on lasting basis. It therefore authorized the merger, subject to compliance by Parmalat with the undertakings given to the Authority.
Rome, 11 August 1999