German anti-trust authority clears DMK to complete private-label ice cream merger


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Related tags Ice cream Mergers and acquisitions Dmk

German anti-trust authority clears DMK to complete ice cream merger
German dairy giant Deutsches Milchkontor GmbH (DMK) has been given the regulatory go-ahead to complete its acquisition of rival German private-label ice cream manufacturer, Roseneis.

In a statement issued earlier this week, Bundeskartellamt – the German federal competition authority – cleared the 2012-agreed takeover of Heinsberg-based Roseneis by DMK’s ice cream business – DMK Eis GmbH.

Germany’s highly-competitive private-label ice cream market is dominated by four manufacturers, according to Bundeskartellamt – R&R Ice Cream Deutschland, Eisbar Eis GmbH, DMK Eis, and Roseneis.

“Although the level of concentration in the private-label ice cream sector is very high and still increasing, the merger could be cleared following an in-depth examination of the project,” ​said Bundeskartellamt president, Andreas Mundt.

“The food retail sector will continue to have enough scope in its procurement activities. In the production of ice cream there are free capabilities which lead to competitive pressure. Moreover, with the food retail sector, the manufacturers of ice cream face a strong demand side,”​ said Mundt.

According to the authority, R&R Ice Cream Deutschland is, and will continue to be, a key competitor to the merged company.

DMK entered into the agreement to acquire a majority stake in Roseneis in November 2012.

According to an announcement made at the time, DMK Eis and Roseneis will initially continue to operate independently once the deal has been completed. The two businesses will then merge at a later date.

Commenting on the deal in November 2012, DMK CEO, Dr Josef Schwaiger said that the acquisition of Roseneis would “perfectly” ​complement its international ambitions.

Roseneis manufactures a wide range of private-label ice cream products including cones, waffles, and tubs from its four Germany-based production sites - one in Haaren, another in Nuremberg, and two in Prenzlau.

As well as supplying the German market, Roseneis currently exports to 22 European countries including the UK, France, and Italy, as well as to the US, Australia, New Zealand, Thailand, and the United Arab Emirates.

“The product competencies of DMK Eis and Roseneis complement each other perfectly. Above addition, Roseneis strong in exports and fits perfectly with our internationalisation strategy,”​ said DMK CEO, Dr Josef Schwaiger. attempted to contact DMK in regards to the Bundeskartellamt decision, but nobody from the company was available to comment prior to publication.

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