NMa: Smiths's Acquisition of Duyvis Cleared

Smiths Food Group, a division of PepsiCo, may press ahead with its plans to acquire Duyvis. Thus concludes the Netherlands Competition Authority (NMa) after assessing the outcome of this acquisition. Smiths Food Group produces crisps and other kinds of savoury snacks. Duyvis specialises in cocktail snacks and peanuts.

The NMa ascertains that in combination the parties will establish a strong position in the savoury snacks market, but a merger will not lead to economic dominance or a further enhancement thereof. After the merger, consumers will continue to have a sufficient choice of savoury snacks, including private label and branded products. Besides, supermarkets will retain sufficient countervailing powers to address the new market player.

In case of mergers and acquisitions that exceed fixed turnover limits, the NMa will evaluate whether economic dominance occurs or is further enhanced. Such economic dominance may have averse effects on prices, product quality and diversity of supplies, since the new company may act largely independent of competitors, wholesale customers and, finally, consumers, as a result of the position obtained.