Acquisition of Arrivé by LDC allowed
The European Competition Authority has authorized the takeover of the Arrivé Group by LDC Group in France under 2 conditions: sale of activities tied to the Saint-Sever brand owned by Arrivé, and commitments on the market for poultry meat products.
“The Competition Authority has conducted a careful review of the acquisition by the LDC group of Arrivé, active in the sectors of animal feed and poultry. The transaction does not raise any competition in the first sector, but the Authority has, however, found that it significantly enhances the presence of the LDC group at various stages of production and marketing of poultry meat and poultry products,” the Competition Authority stated.
LDC is committed to selling the assets of Farmers Group Landais, and therefore the brand Saint-Sever, held by Group Arrivé, so as to reduce the accumulation of market share in regard to collecting poultry for slaughter in the Southwest, and marketing of the products to local butchers and supermarkets.
After the operation, the LDC group significantly strengthens its position on all products made of meat, especially further processed poultry products (roasted chicken, breaded chicken, chicken snacks, etc.).
In each of these markets remain strong competitors (Doux, Gastronome, Duc) operate, however none of them has such a dominant position in this range of products as LDC does.
To avoid that this position does not affect competition on the sales of these products to supermarkets, the LDC group has said not to grant discounts for the purchase of multiple product types.
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