The Bundeskartellamt has granted approval for Darling Ingredients, based in Irving, Texas, to acquire more than 50% of PB Leiner, a subsidiary of the Belgian Tessenderlo Group. This acquisition will also lead to the establishment of a joint venture focused on gelatin and collagen peptides.

Darling Ingredients is a global developer and manufacturer of edible and non-edible ingredients, serving sectors such as food, dietary supplements, and pharmaceuticals. PB Leiner processes animal by-products into ingredients like gelatin and collagen peptides, with both companies operating production facilities worldwide.

Extensive investigations and global surveys of competitors and customers indicated that the merger would significantly increase Darling Ingredients' market share in gelatin and collagen peptides in Europe. However, the conditions for prohibiting the merger were not met.

Andreas Mundt, President of the Bundeskartellamt, noted that Darling Ingredients is a market leader in the production and distribution of gelatin and collagen peptides in Europe. The acquisition of PB Leiner, currently the third-largest manufacturer, will further increase Darling's market share. Nevertheless, the presence of numerous competitors and dynamic growth in the collagen peptide sector will ensure sufficient alternatives for customers in the future.

The combined market share of the parties in collagen peptides is close to 40%, but the dynamic market conditions suggest increasing competition. The market is characterized by growth and higher margin expectations, with significant flexibility in switching between gelatin and collagen peptides. Entering the collagen peptide production requires manageable investments in additional processing, and there are considerable imports of collagen peptides into Europe. Concerns raised by competitors and customers regarding the gelatin market in Europe were not substantiated, leading to no critical market shares being identified for the merger parties.

Gelatin and collagen peptides are multifunctional ingredients used across various industries. In the food and pharmaceutical sectors, gelatin is used for making gummy candies, as a baking ingredient, and for producing soft and hard capsules for medications. Collagen peptides are primarily utilized in health, food, cosmetics, and personal care products.

The Bundeskartellamt has collaborated with competition authorities from the USA, Poland, Brazil, and Turkey during this process.