Sammontana may acquire Forno d'Asolo, but Antitrust dictates rules to ensure competition

The Competition Authority has authorised 'with conditions' the acquisition by Frozen Investment and Sammontana Finanziaria of joint control of Sammontana and Forno d'Asolo.

The transaction, explains a note from the Antitrust Authority, involves the aggregation of the two most important players active in the frozen bakery products sector (which includes breakfast bakery products, savoury snacks, pastry and bakery products) in the food service channel (bars, hotels, restaurants and bakery departments in large-scale retail outlets).

Both Sammontana and Forno d'Asolo are active with well-known brands such as Tre Marie, Il Pasticcere, Mongelo the former and Bindi, Lizzi and Forno d'Asolo the latter. The investigation established the existence of a national market for frozen breakfast bakery products, in the food service channel, distinct from both fresh products and other types of bakery products (pastry, bakery, savoury snacks). It was found that in this market 'the merger may produce significant anti-competitive effects because it removes the competitive constraint between the two main players'.

"Sammontana and Forno d'Asolo have production and distribution characteristics that are far superior to those of their competitors, which are much smaller in size and have a limited capacity to react," the Antitrust Authority underlined. In particular, the two companies, following the merger, would have had a very high market share (between 45% and 50%) such as to guarantee leadership in national sales of frozen bakery products in Italy and more than four times that of the first competitor.

The transaction would therefore have resulted in 'significant incentives' to increase product prices. In addition, the two companies have distribution capacity to create a competitive constraint after the merger.