Press Release: Mergers: Commission clears proposed acquisition of parts of GBI by Associated British Foods, subject to conditions

The European Commission cleared under the EU Merger Regulation the proposed acquisition of certain parts of GBI of the Netherlands by the UK-based company Associated British Foods (ABF), subject to conditions. Both companies produce dry, compressed and liquid baker's yeast. The Commission's in-depth market investigation, opened in April 2008 indicated that the concentration, as originally notified, would have raised competition concerns in the markets for compressed baker's yeast in Spain and Portugal. To remedy the Commission's concerns, ABF offered to divest the GBI businesses in Spain and Portugal, whilst ensuring that these businesses will be linked to a sufficient production capacity. In light of these commitments, the Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.