The European Union has this week approved major purchases for leading fresh produce groups Total Produce and Univeg after deciding that the deals would not have a major impact on competition in Europe.
Ireland's Total Produce has been given permission by the European Commission (EC) to proceed with the purchase of a majority stake in Netherlands-based Haluco and Nedalpac, two distributors of fresh produce, for approximately €23m.
The deal includes an initial €9.5m cash payment for 60 per cent of the two groups, with an extra €13.5m paid if certain profit targets are hit.
'After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic area or any substantial part of it,' the EC said in a statement on 12 August.
The Commission also gave its approval to the acquisition of Chiquita-owned Atlanta AG, the German fruit and vegetable importer and wholesaler, by De Weide Blik – the holding company of leading Belgian fresh produce group Univeg.
Again, the EC felt that the €56.7m purchase would not impede effective competition in the European Union. “The Commission’s examination of the proposed transaction showed that the horizontal overlaps and the vertical relationships between the activities of the two companies and their combined position on the markets for fruits and vegetables concerned are limited,” the EC said in a statement.
