{"id":70635,"date":"2016-05-17T14:00:09","date_gmt":"2016-05-17T14:00:09","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=c3d070608260717892d3370edf30e38b"},"modified":"2016-05-17T14:00:09","modified_gmt":"2016-05-17T14:00:09","slug":"press-release-juice-merger-must-offer-undertakings-to-avoid-in-depth-inquiry","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=70635","title":{"rendered":"Press release: Juice merger must offer undertakings to avoid in-depth inquiry"},"content":{"rendered":"
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Hain<\/abbr> Frozen Foods UK Limited (Hain<\/abbr>) bought Orchard<\/abbr> House Foods Limited (Orchard<\/abbr>) on 21 December 2015 and the Competition and Markets Authority (CMA<\/abbr>) has found that the 2 companies are the largest suppliers of freshly squeezed fruit juice to supermarkets and other retailers, such as cafes, in the UK.<\/p>\n

Freshly squeezed fruit juice sales are around \u00a3112 million in the UK annually. The companies are the only 2 suppliers to supermarkets, with other suppliers of freshly squeezed fruit juices having limited sales to the food service retailers such as cafes and restaurants. The CMA<\/abbr>\u2019s investigation found that other juice manufacturers did not intend to start supplying freshly squeezed juices to replace the lost competition. Therefore, the CMA<\/abbr> believes that the merger raises competition concerns and could lead to higher prices for retailers and consumers.<\/p>\n

The merged entity would also supply a significant share of prepared fruit to supermarkets and other retailers, but the CMA<\/abbr> did not find a concern in this area because it faces sufficient competition from other suppliers.<\/p>\n

Sheldon Mills, CMA<\/abbr> Senior Director of Mergers and the decision-maker in this case, said:<\/p>\n

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Fruit juices are an increasingly popular purchase for UK consumers, in supermarkets, cafes and restaurants. Freshly squeezed juices are different in taste, quality and price from other concentrate juices. This merger removes the rivalry between 2 long-standing suppliers of freshly squeezed fruit juice to supermarkets and food service retailers.<\/p>\n

Therefore, unless acceptable undertakings are offered, this merger will be referred for an in-depth investigation to ensure that it does not result in higher prices or worse quality for retailers and consumers.<\/p>\n<\/blockquote>\n

All information relating to the investigation is available on the case page<\/a>.<\/p>\n

Notes for editors<\/h3>\n
    \n
  1. The CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For more information on the CMA<\/abbr> see our homepage<\/a> or follow us on Twitter @CMAgovuk<\/a>, Flickr<\/a> and LinkedIn<\/a>. Sign up to our email alerts<\/a> to receive updates on merger cases.<\/li>\n
  2. Under the Enterprise Act 2002 (the Act<\/abbr>) the CMA<\/abbr> has a duty to make a merger reference, resulting in an in-depth phase 2 merger investigation, if the CMA<\/abbr> believes that it is or may be the case that a \u2018relevant merger situation\u2019 has been created, or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and that the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.<\/li>\n
  3. Under the Act<\/abbr> a \u2018relevant merger situation\u2019 is created if 2 or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds \u00a370 million (\u2018the turnover test\u2019) or as a result of the transaction, in relation to the supply of goods or services of any description, a 25% share of supply in the UK (or a substantial part of the UK) is created or enhanced (\u2018the share of supply test\u2019).<\/li>\n
  4. The CMA<\/abbr>\u2019s duty to refer the merger for a phase 2 investigation under the Act<\/abbr> is not exercised whilst the CMA<\/abbr> is considering whether to accept undertakings (if offered) in lieu of a reference. Hain<\/abbr> and Orchard<\/abbr> have until 24 May 2016 to offer undertakings to the CMA<\/abbr> that might be accepted by the CMA<\/abbr>. The CMA<\/abbr> then has until 1 June 2016 to decide whether these might be acceptable as a suitable remedy. If this is the case, it will consult on the proposed undertakings before accepting them. If no undertakings are offered and accepted, then the CMA<\/abbr> will refer the merger.<\/li>\n
  5. All the CMA<\/abbr>\u2019s functions in phase 2 merger investigations are performed by inquiry groups chosen from the CMA<\/abbr>\u2019s panel members. The appointed inquiry group are the decision-makers on merger investigations.<\/li>\n
  6. The CMA<\/abbr>\u2019s panel members come from a variety of backgrounds, including economics, law, accountancy and\/or business; the membership of an inquiry group usually reflects a mix of expertise and experience (including industry experience).<\/li>\n
  7. The text of this decision will be placed on the case page<\/a> as soon as is reasonably practicable.<\/li>\n
  8. Enquiries should be directed to Simon Belgard (simon.belgard@cma.gsi.gov.uk<\/a>, 020 3738 6472).<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Hain\u2019s acquisition of Orchard will be referred for an in-depth merger investigation unless acceptable undertakings are offered.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/70635"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70635"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/70635\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}