Wed, 27 Feb 2013 | BUSINESS SALE
The Office of Fair Trading (OFT) has allowed the sale of Nakano UK Holding Limited's Burntwood vinegar plant in Staffordshire to Baxters Food Group Limited to go ahead.
The sale has been accepted "in order to remedy competition concerns arising from Nakano's completed acquisition of the vinegar and pickles businesses of Premier Foods Group Limited," the OFT confirmed.
OFT originally announced back in September 2012, when the deal was first under discussion, that it was going to suspend its duty to refer a merger of the two firms to the Competition Commission while it considered whether or not to “accept undertakings in lieu of a reference”.
A public consultation was launched on the proposals, along with a careful assessment, which included considering the suitability of Baxters as the upfront buyer. No concerns were received during this time and the decision was pushed through to allow the sale to go ahead.
Ali Nikpay, senior director and decision maker on the case with the OFT, commented: “The OFT was concerned that prices of unbranded malt and spirit vinegar would rise as a result of Nakano's acquisition of Premier's vinegar business, which resulted in a merger to monopoly for some customers.
“The sale of the Burntwood plant to Baxters restores pre-existing levels of competition in the manufacture and supply of these vinegars to UK customers.”
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