Mergers: Commission approves Total Produce’s acquisition of Dole, subject to conditions

Total Produce is a leading fresh produce distributor in the EU. Dole is a producer, marketer and distributor of fresh fruit and vegetables with activities in the EU and worldwide. Both companies own production facilities for bagged salads in Sweden.

The Commission’s investigation

The Commission examined the effects of the proposed transaction on competition in the markets for the supply of bagged salads, bananas, pineapples and other fresh fruit and vegetables.

On the basis of its preliminary investigation, the Commission was concerned that the transaction, as originally notified, would have significantly reduced competition in the market for the supply of bagged salads in Sweden. Only one other significant competitor, Salico, would have remained in this market post-transaction. As a result, the Commission was concerned that the combined entity would not have faced sufficient competitive pressure from this remaining player.

The Commission found that no competition concerns would arise with respect to all other products where the companies’ activities overlap, due to the presence of a sufficient number of alternative suppliers.

The proposed remedies

To address the Commission’s competition concerns, the companies offered to divest Dole’s bagged salads business in Sweden, Saba Fresh Cuts AB.

These commitments fully address the Commission’s concerns as they remove the entire overlap between the companies’ activities in the supply of bagged salads in Sweden.

Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the EU. The Commission’s decision is conditional upon full compliance with the commitments.

Companies and products

Total Produce, headquartered in Ireland, is a leading fresh produce distributor, which sources, imports, packages and distributes over 300 lines of fresh produce. It operates from 26 countries through a network of 146 operating facilities, including 101 operational facilities in Europe and serves the retail, wholesale and foodservice sectors.

Dole is a US company whose EEA operations are headquartered in Germany. It produces, markets and distributes fresh fruit and vegetables in North America, Europe, Latin America, South Africa and Dubai. Dole is currently controlled by Mr David H. Murdock, who will jointly control the company together with Total Produce following the transaction.

Merger control rules

The transaction was notified to the Commission on 11 June 2018.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

More information on this case is available on the Commission’s competition website, in the public case register under the case number M.8829.

* Updated on 30 July 2018 to reflect acquisition of joint control.




Central African Republic: military training mission expanded and extended

On 30 July 2018, the Council extended the mandate of the EU military training mission in the Central African Republic (EUTM RCA) by two years, i.e. until 19 September 2020. The Council also modified the mandate of the mission to enable it to give strategic advice not only to the Ministry of Defence, military staff and the armed forces, but also to the President’s cabinet, and to allow it to provide advice on civil-military cooperation, including to the Ministry of the Interior and the gendarmerie. The Council has allocated a budget of around €25.4 million for the common costs of EUTM RCA for the period 20 September 2018 to 19 September 2020.

The Council launched EUTM RCA on 16 July 2016 as a follow-up to an EU military advisory mission (EUMAM RCA). The mission contributes to security sector reform in the country. It works towards modernised, effective, inclusive and democratically accountable Central African Armed Forces (FACA). It provides strategic advice to the Central African Republic’s Ministry of Defence and the General Staff, and gives courses to officers and non-commissioned officers, as well as training to FACA units. The mission is based in Bangui.

Today’s Council Decision was adopted by written procedure.




EU NAVFOR Somalia Operation Atalanta: Council prolongs the Operation and decides on new headquarters and new Operation Commander

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Statement of the Commissioner for Regional Policy, Corina Crețu

“We stand side by side with the Greek people in such difficult moments. We have a permanent dialogue with the Greek authorities and, through the services of the DG Regio, we provide the necessary assistance in order to speed up the procedure for accessing the EU Solidarity Fund (EUSF).

Currently, the Greek authorities make an estimate of the damage caused by fires, on the basis of which they will send the application for EUSF to the European Commission. As soon as the necessary conditions for accessing this fund are met, we are ready to do everything possible to pay an advance as quickly as possible.

Moreover, once the requirements for accessing the EUSF are met, there is also the possibility for Greece to benefit from a 95% co-financing rate for reconstruction work financed through Cohesion Policy. And, last but not least, as I have already written to Prime Minister Tsipras and Minister Haritsis, both myself and my services are prepared to change the operational programs dedicated to Greece under the Cohesion Policy, based on a request from the Greek authorities. This will enable us to redirect European funds and to relaunch economic activity in affected areas.”

 




Statement of the Commissioner for Regional Policy, Corina Crețu

“We stand side by side with the Greek people in such difficult moments. We have a permanent dialogue with the Greek authorities and, through the services of the DG Regio, we provide the necessary assistance in order to speed up the procedure for accessing the EU Solidarity Fund (EUSF).

Currently, the Greek authorities make an estimate of the damage caused by fires, on the basis of which they will send the application for EUSF to the European Commission. As soon as the necessary conditions for accessing this fund are met, we are ready to do everything possible to pay an advance as quickly as possible.

Moreover, once the requirements for accessing the EUSF are met, there is also the possibility for Greece to benefit from a 95% co-financing rate for reconstruction work financed through Cohesion Policy. And, last but not least, as I have already written to Prime Minister Tsipras and Minister Haritsis, both myself and my services are prepared to change the operational programs dedicated to Greece under the Cohesion Policy, based on a request from the Greek authorities. This will enable us to redirect European funds and to relaunch economic activity in affected areas.”