President of UOKiK has consented for acquisition of E. Wedel, confectionery manufacturer, by the Japanese Lotte Holdings. The transaction will not restrict competition on the market of chocolate products. At the same time, for all concentrating undertakings, the Office has prepared draft clarifications regarding the method of notification of intended concentration. Suggestions and comments can be sent until the end of September

The planned transaction results from the decision of the European Commission, which indicated ownership transformation as a condition for consent for Kraft’s acquisition of the British confectionery manufacturer, Cadbury. The acquired company is E. Wedel, belonging to Kraft capital group, which operates in the field of sales and manufacturing of food and beverages.

The acquiror is the Japanese Lotte Holdings, inter alia manufacturing and selling food products, including confectionery. The main area of undertaking’s operations is Asia.

The planned concentration consists in acquisition of 100% of shares in E. Wedel authorised share capital by Lotte Holdings. This should increase the production basis and sales network of one of the undertakings belonging to the holding.

Having conducted antitrust proceedings, the President of UOKiK has stated that the concentration will not significantly restrict competition on the market of chocolate products. Although the transaction will affect the domestic chocolate pralines sales market, it will not lead to Lotte obtaining dominant position. As a result, total share of both entities will not exceed the 40% threshold and the planned acquisition will not cause radical changes in market structure. Moreover, there are no barriers for entering the market that would restrict competition.

At the same time, we would like to inform that the draft Clarifications on notification of intended concentration to the President of UOKiK have been publishedon the Office’s website. Our experience shows that the delivered documents are often accompanied by requests of undertakings regarding clarification of provisions governing notification of intended concentration. In response to those inquiries, the Office of Competition and Consumer Protection has drawn up the Clarifications, which should raise legal awareness of the obligation to notify of the intended concentration, as well as facilitate interpretation of the provisions regulating the notification procedure. In the opinion of the Office, publication of the Clarifications will facilitate preparation of applications and thus accelerate issuing of decisions by the President of UOKiK.

Should there be any comments, opinions or suggested changes, please submit them by 30 September 2010 at [SCODE]a29uY2VudHJhY2plQHVva2lrLmdvdi5wbA==[ECODE]. Any additional information concerning the developed Clarifications can be found at 22 55 60 122 in the Department of Concentration Control.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańcow Warszawy 1, 00-950 Warszawa
Tel.:(+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]