Dutch regulator blocks takeover of Unilever's Unox brand
UL•Dutch regulator ACM blocked Zwanenberg Food Group's takeover of Unilever's Unox brand, saying the deal could make Zwanenberg too dominant in supermarkets and lead to price increases.
1. ACM blocks takeover
The Dutch market regulator said it would not allow Zwanenberg Food Group to take over Unilever's Dutch soup and sausage brand Unox. The deal would have given Zwanenberg a 60% to 85% share of smoked and boiled meat products and ready-to-eat soups, and concessions offered by Zwanenberg did not resolve competition concerns.
2. Unilever reviews decision
Unilever said it was very disappointed and would carefully review the decision to determine next steps. The company said it stood behind its proposal and remained convinced it offered a robust and workable solution to the ACM's concerns.
3. Food division plans
Unilever has announced plans to hive off its food division and merge it with spice maker McCormick to create a $65 billion food company. That deal is also subject to competition scrutiny in the United Kingdom.
