24 February 2015: Acquisition of Glon Sanders' poultry slaughtering and sales activities by LDC

volaille

The Autorité de la concurrence clears the acquisition of Glon Sanders’ poultry slaughtering
and sales activities by LDC.

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The Autorité de la concurrence has just cleared the acquisition of the poultry slaughtering and sales activities of the Glon Sanders group (AVRIL group, formerly Sofiprotéol) by LDC.

The companies

LDC is organised into four areas:

- poultry production activities, cereal collection and  agro supplies, as well as egg production, organised and controlled by the parent company Huttepain Aliments;
- the "poultry" area, specialising in the slaughter and sale of poultry and poultry processed products organised by the parent company LDC Volaille;
- the “delicatessen” area, specialising in the production and sale of delicatessen products, organised by the parent company LDC Traiteur;
- the "international" area, comprising subsidiaries in Poland and Spain.

The acquired activities constitute all the poultry slaughtering, cutting and processing assets held by Glon Sanders, controlled by Sofiprotéol (now the Avril group).

The Autorité’s analysis led it to find that the operation is not such that it will have a negative affect on competition.

The two companies are active across the whole poultry chain: from collecting poultry for slaughter to the marketing of fresh meat and poultry processed products.
 

  • On the markets for the collection of live poultry intended for slaughter

The activities of Glon Sanders and LDC only overlap in Brittany where their combined market shares remain moderate after completion of the merger.
 

  • On the markets for the sale of fresh meat and poultry-processed products

Although some products have high market shares, Glon’s assets are only present in the retailers’ own-brand segment. However, as regards the sale of food products intended for mass retail distribution, the latter has major bargaining power vis-à-vis its suppliers, particularly in relation to its supply of retailers’ own-brand products.

The Autorité has also highlighted that LDC will continue to face competition from several competitors after the deal is completed (in particular Terrena Gastronome, Maïsadour/FSO/Delpeyrat and Ronsard) which will be in position to stir price competition.

The Autorité has also taken into account the growing importance of imports in the poultry sector which exercise strong competitive pressure on the French poultry sector as a whole, and on LDC in particular.


> See full text of Decision 15-DCC-14 of 24 February 2015 in relation to the acquisition of Glon Sanders’ poultry slaughtering and sales activities by LDC.

> Press contact: Rebecca Hébert - +33 (0)1 55 04 01 81 - Email
 

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