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Commission’s Decision on the Proposed Acquisition
The Commission examined the effects of the operation in the home
air freshener market, especially in the electrical air fresheners market,
where the parties have high market shares in Belgium and the UK. The
Commission also analyzed whether the operation would eliminate a
potential competitor in the car fresheners or fabric fresheners markets. The
Commission observed that the operationwill continue to face several strong,
effective competitors with significant market shares. Thus, the European
Commission concluded that the transaction would not significantly impede
effective competition in the European Economic Area (hereinafter referred
to as the “EEA”) or any substantial part of it and cleared the proposed
acquisition under the EU Merger Regulation.
Acquisition Unilever/Sara Lee
Operation
The operation concerns the acquisition of Sara Lee Household and
Body Care International by Unilever NV and Unilever Plc. The deal was
notified to the European Commission on 21 April 2010 for clearance.
Commission Initial Investigation
During its initial investigation, the Commission observed that the
operation would bring together a number of important competing brands
in the personal care and in the home care markets. In addition, the merger
would lead to high market shares in some member states and create a
market leader. The operation would remove a strong alternative supplier in
the deodorant, bath and shower, and fabric care markets. The Commission
emphasized that the operation would create potential competition concerns
in several of the product markets mentioned above.
The Commission decided to open an in depth-investigation in order
to carefully examine the anti-competitive effects of the operation on these
markets
4
.
In-Depth Investigation Procedure
The Commission now has 90 working days, until 5 October 2010, to
make a final decision on whether the concentration would significantly
impede effective competition within the EEA or a substantial part of it.
4 The decision to open an in-depth inquiry does not prejudice the final result of the investigation.