Poland: Lotte obtains approval for Wedel takeover

Warsaw / PL. (lg) At the end of June, US-American Kraft Foods Inc. announced it had signed an agreement to sell Cadbury´s E. Wedel-branded chocolate and sugar confectionery operations in Poland to the South-Korean / Japanese Lotte Group for an undisclosed sum (see bakenet:eu on 2010-06-29). The sale included the E. Wedel business, its related brands and a manufacturing facility in Warsaw. Approximately 1’000 Cadbury Wedel employees transferred with this deal to Lotte. In mid-August the Polish Competition authorities approved the takeover of E Wedel by the Group. Poland´s anti-monopoly body said «The transaction will not lead to a substantial reduction of competition in the market for chocolate products. Although the transaction will affect the domestic market sales of chocolate pralines, however, it does not lead to a dominant position by Lotte. As a result, the combined share of both entities will not exceed a threshold of 40 percent and the planned acquisition will not result in radical changes in market structure. There are no further barriers to entry which could restrict competition».