European Commission approves Lactalis acquisition of Omira

Lactalis' takeover of German company Omira has been approved.

The European Commission has announced it has approved, under the European Merger Regulation, the indirect acquisition of the German-based dairy company Omira by French dairy group Lactalis.

The companies' activities overlap on the market for the supply of raw milk in France and on the market for long-life dairy products in Italy and Slovenia.

The Commission concluded, however, the proposed merger would not give rise to competition concerns given the small increase in market share that would result from the concentration and presence of many other well-established competitors.

Ten-year price guarantee

In June, 97.8% of Omira shareholders voted in favor of the takeover.

At the time, Omira said the decision would ensure positive future perspectives for both Omira sites (Ravensburg and Neuburg) and a 10-year milk price guarantee for all its milk producers.

Following the formal approval of the deal, the day-to-day Omira business operations, including all employee contracts (with all collective bargaining regulations as well as employee seniority), will first be transferred to Omira Industrie GmbH. In a second step, Lactalis will then take over Omira Industrie GmbH.

Raw milk supply

Omira Oberland-Milchverwertung GmbH will remain independent under the ownership of the Omira milk producers. Its sole task will be the procurement and management of the raw milk supply.

It will continue to collect the milk of the individual milk producers and the cooperatives and sell it in bulk to Lactalis.

All contracts – including notice periods - between individual milk producers, cooperatives and Omira Oberland-Milchverwertung GmbH will remain intact.

The milk price will be secured through contracts signed with Lactalis that will be in effect from September 1, 2017 until at least August 31, 2027.

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