The Competition Council authorized Albalact’s takeover by Lactalis | Progresiv

The Competition Council authorized the takeover of Albalact, dairy market leader, by French group Lactalis, who will soon make a public offer for the takeover of the entire stake of the Romanian company. The deal includes Albalact-owned companies, namely Raraul and Albalact Logistic.

Within the operation of economic concentration the following markets were analyzed: raw milk collection, production and marketing of fresh milk for consumption, production and marketing of UHT milk for consumption, production and marketing of butter, production and marketing of sour cream, production and marketing of acidophil products, production and marketing of cheese and dairy for "Cornul si laptele" (“Croissant and milk”) school program. The Competition Council assessed the merger from the viewpoint of its compatibility with a normal competitive environment in accordance with regulations on economic concentration and found that it does not raise significant obstacles to competition on the Romanian market or on a significant part of it, especially by creating or consolidating a dominant position.

Albalact is leader on the milk for consumption market in Romania, estimated at 160-170 million euros, with a share amounting to about 30%, while Lactalis, who has a share of 10-15% of the value, is present on the Romanian milk for consumption market directly by its brand LaDorna. With the completion of the acquisition, the French group Lactalis will have a share of at least 40% of the milk for consumption market in Romania, aiming to reach total sales of 60 million euros in this segment of the market, which will generate the market leadership position.

This is not the first important acquisition that the French producer makes on the local market - in 2008 Lactalis bought LaDorna brand from businessman Jean Valvis for 70-90 million euros.

Albalact Group is the largest company with Romanian shareholders within the industry, the main shareholder being Raul Ciurtin. Albalact ended last year with a turnover of 450 million lei (over 100 million euros), results calculated by IFRS standards.

Lactalis is the worldwide leader of the milk processing industry, owning brands such as President and Parmalat. The group has 75,000 employees and over 200 factories, in 43 countries, last year reporting a turnover of 17 billion euros.