Poland’s competition Authority has objected to Cargill’s takeover of Dossche, arguing that the combined company would have a dominant position on local animal feed markets.

Both Cargill Poland, a subsidiary of Cargill International, and Dossche produce and sell feed mix for cattle, pigs and poultry, and vitamin-mineral supplements for animal feed. Cargill filed for approval of the takeover in June, 2015. UOKiK’s subsequent market research for the case considered the views of 60 of the two companies’ competitors. The proceedings showed that feed mixes intended for cattle, pigs and poultry cannot be substituted one for another and must be analysed separately for the following reasons: regulations in force restricting the production of feed for cattle, pigs and poultry in the same establishment, the composition of feed mixes for different animals, different recipients and different uses. The Authority’s research also showed that the vast majority of feed mix sales occur in a limited area from production facilities (from 120 km in the case of poultry feed to 180 km for cattle feed), which justifies the classification of these markets as local ones.

In UOKiK’s view, the acquisition could significantly limit competition on the local chicken feed market within a radius of 120 km from one of Dossche’s production facilities as well as on the local cattle feed market within a radius of 180 km of another of its plants. The combined share of the two companies on the markets in question would significantly exceed the 40 percent threshold which the Act on competition and consumer protection classifies as a dominant position. It was on those grounds that UOKiK issued its objections to the transaction.

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