Brussels, 26/03/2012 (Agence Europe) - On Friday 23 March, the European Commission decided, following an investigation, to authorise the planned acquisition of Gemeaz Cusin by Avenance Italia, both active in contract food services in Italy.
In the investigation, the Commission examined the competitive effects of the proposed acquisition, in the market for contract food services in the defence and other public security services' industry in Italy, where both companies are active. The investigation showed that the strong position held by the parties in this market derives to a large extent from one particular contract which expires this year. The Commission also found that price rises after the merger are unlikely because customers would have no problem switching to competing contract food service providers. Moreover, the merged entity would not be in a position to hinder the entry or expansion of competitors, as the costs to start up or expand an activity in the sector of contract food services in Italy are low. (OL/transl.fl)