Brussels, 09/08/2001 (Agence Europe) - The European Commission has decided to approve the takeover of Nutricia Dairy and Drinks Group (NDDG), a branch of the company Koninklijke Numico N.V. (the Netherlands), by another Dutch company Friesland Coberco Foods Holding N.V. (FCDF). According to the Commission, this concentration in the dairy sector will not have the effect of creating or strengthening a dominant position. The activities of the two companies essentially overlap in the production, in the Netherlands, of milk for coffee and milk-based aromatic drinks. The Commission concluded that the particularities of the sector would limit the possibility for FCDF of raising prices after the transaction. Indeed, the sector is characterised by: the presence of strong competition and potential competition; - strong countervailing powers from the customers; - ease of entry through the existence of private labels; - supply side sustainability regarding the different sectors as well as an over-capacity in the industry.