Brussels, 05/11/2007 (Agence Europe) - On 31 October 2007, the European Commission cleared the planned acquisition of joint control over Dailycer Group of France and DVG of Germany, both ready-to-eat cereal producers of products mainly sold under retailers' own labels, by private equity fund OEP and MSP Stiftung.
At the moment, each of the acquirers separately owns one of the businesses. The French Dailycer Group is controlled currently by One Equity Partners II (OEP), a private equity fund, ultimately controlled by J.P. Morgan Chase & Co, a global financial services firm. The German De-Vau-Ge Gesundkostwerk (DVG) is controlled currently by MSP Stiftung (holding assets for Seventh-Day Adventists Church members). As a result of the planned deal, Dailycer Group and DVG would combine their activities in a fully-functioning joint venture.
The Commission's examination of the market showed that the two cereal producers had a different geographic focus. Dailycer sells mainly in France, Spain and the UK, whereas DVG focusses on the German market. Even in the countries where both companies sell, namely Belgium, Italy and Spain, they cannot be considered as close competitors. Therefore the deal would not lead to competition concerns. (C.D.)