PARMALAT/CARNINI
PRESS RELEASE
PRESS RELEASE
Investigation into the acquisition by Parmalat of the Carnini company
The Competition Authority decided at its meeting held on 2 November to begin an investigation into the Parmalat and Carnini companies. The investigation followed receipt of a notice from Parmalat that it had acquired exclusive control of Carnini.
Parmalat is one of Italy's leading food companies, mainly in the field of processing and marketing milk and dairy products. Carnini also mainly works in the same industry, and is the third largest in Lombardy.
There are only a small number of companies working on the fresh milk market in the Lombardy region, and these include the only two nationwide milk and dairy product producers (Parmalat and Granarolo) whose market shares are fairly similar and far larger than their competitors. This being so, and considering the high level of concentration, the general weakness of competition on this particular market, the substantial market entry barriers, stagnating demand and the substantial standardisation of the product concerned, the Authority is of the opinion that the acquisition might create or strengthen a dominant position, whether acting alone or jointly with Granarolo, on the fresh milk market in the Lombardy region.
The investigation must be completed within 45 days.
Rome, 6 November 2000