NMa Approves Takeover of SturkoMeat by Dumeco

The Director-General of the Dutch Competition Authority (NMa) today approved the takeover of SturkoMeat by Dumeco, the two largest pig abattoirs in the Netherlands. Due to the structure of this market, NMa sees no reason to assume that, as a result of this takeover, Dumeco will acquire a position of dominance on the Dutch market that would obstruct competition.

Both Dumeco and SturkoMeat are active in the area of the procurement and slaughter of pigs and the further processing and sale of pork. Pigs are purchased through pig traders and directly from pig farmers. On the markets for the sale of pork products (carcasses, pork cuts and deboned meat), Domeco will only have a small market share after the takeover (less than 10%). These sales markets extend right across the European Union.

Due to the specific situation on the procurement market for pigs for slaughter, NMa is of the opinion that, with a market share of between 40% and 50%, Dumeco will not acquire a position of dominance on this market. Dumeco cannot set its prices independently of the other parties, since the international market for the sale of pork is an important factor in setting prices. In addition, pig traders and pig farmers are free to offer their pigs to other abattoirs. They are not tied to a particular abattoir by long-term contracts. Given the present overcapacity in the sector, there are realistic alternatives. Abattoirs in the border areas exercise competitive pressure (between 5% and 10% of Dutch pigs are slaughtered in foreign abattoirs).

In assessing this concentration, the reorganisation of the pig sector, of which notification has been given, was not taking into account. NMa will deal with this in a separate procedure.