Brussels, 09/05/2001 (Agence Europe) - The European Commission has just cleared the acquisition, by the British catering company Compass Group Plc, of 66.7% of the capital of the Swiss-based food service firm Selecta and which it still does not control. The deal's impact will mainly be felt in the Swedish market for workplace coffee vending machines, but the Commission considers that there will remain sufficient competition, especially as Selecta's share on the local market has recently dropped.
Compass is a world-wide player in foodservices and related contract services and other activities. It currently holds a 33.3% stake in Selecta nut has no control over it. The two companies' activities overlap in the supply of vending services in several Member States (Austria, Belgium, Finland, France, Luxembourg, Spain and Sweden). The Commission, however, only focused its examination on the Swedish market, as the combined market share raises no problems in the other countries. On the Swedish market, the concentration affects free-service activities, especially the sale of vending machines (essentially "table-top" machines) in the workplace (the operators supply the machines, the coffee and provide regular servicing for the machines).
With a 51.5% market share, Selecta is the foremost free-service operator in Sweden. However, the operation with Compass will only strengthen its position by 1.8%. In addition, in its decision to clear the operation, the Commission took account of the turnover recorded by Selecta last year and the loss of most of its activities in the north of the country following the split of a number of its formerly franchised companies grouped in a new competitive entity under the JOBMeal name. It also considered that there were several other established national players in Sweden with the ability to compete on a national level, as well as a large number of smaller companies that compete on a local or regional level.