The European Commission is delaying the acquisition of Belgian dairy processor The Food Dairy Group by its Dutch competitor, Royal A-ware, due to concerns about market competition.
The Food Dairy Group, based in Zonhoven, processes milk from 260 farmers into cream, yogurt, pudding, and rice pudding. Founded in 1988 by Gilbert Nijs, the company is currently owned by his daughters, who announced their intention to sell it to Royal A-ware last summer. The Dutch company aimed to complete the acquisition by the end of 2024, but the process has been delayed.
The European Commission is examining whether the merger would unduly impact market competition, leading to months of delay. "The combined revenue of both companies is substantial, warranting a review by the Commission", says Damien Gérard, auditor-general of the Belgian Competition Authority (BMA).
The Food Dairy Group is a mid-sized player in Belgium, with an annual turnover of approximately 300 million euros and 300 employees. Royal A-ware, the primary milk and cheese supplier for supermarket chain Albert Heijn, reported a revenue of 3.3 billion euros in 2023.
