23.02.2025 | German competition authority
The Bundeskartellamt, Germany's competition authority, has given the green light for EDEKA ZENTRALE Stiftung & Co. KG to indirectly acquire Uckermärker Milch GmbH, a subsidiary of Ostmilch Handels GmbH. This decision comes after a thorough review of the potential impact on the market, particularly concerning food producers and large retailers.
Andreas Mundt, President of the Bundeskartellamt, emphasized the authority's vigilance in monitoring acquisitions in the food sector. He stated that the agency's primary concern is to prevent market foreclosure that could disadvantage other producers or retailers. However, in this case, the authority found no evidence suggesting that the acquisition would lead to such outcomes.
Uckermärker Milch operates a dairy facility in Prenzlau, located in northern Brandenburg, and primarily sources its raw milk from local farms in the Uckermark region. The company produces a range of dairy products, including butter, curd, and milk powder. Despite the acquisition, Uckermärker holds relatively small market shares in these categories, and there are numerous larger dairy companies in Germany, ensuring that both retailers and dairy producers have ample alternatives.
EDEKA is recognized as the leading food retailer in Germany, boasting a turnover exceeding 70 billion euros in 2023. The company operates through a three-tier structure that includes the EDEKA Zentrale in Hamburg, regional companies, and approximately 3,400 independent retailers. The Bundeskartellamt considers the EDEKA group as a single economic entity, which also encompasses various operations such as fruit and vegetable distribution, winemaking, meat processing, and bakery production. Notably, EDEKA has not previously engaged in dairy product production.
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