Dutch regulator blocks takeover of Unilever's Unox brand (updated)

Unilever

Tue 08:28

Adds Unilever response in 3rd and 4th bullets
AMSTERDAM/LONDON, Oct 27 (Reuters) - Dutch market regulator ACM on Tuesday said it would not allow the takeover of Unilever's ULVR.L Dutch soup and sausage brand Unox by Zwanenberg Food Group.
The ACM said Zwanenberg's position in Dutch supermarkets would become too dominant and could result in price increases.
     
The takeover would have given Zwanenberg a 60% to 85% market share in smoked and boiled meat products which are very popular in the Netherlands, and in ready-to-eat soups, the regulator said
Concessions offered by Zwanenberg had not been enough to remove competition concerns
Unilever said it was very disappointed by the decision, which it would "carefully review" to determine next steps
"We fully stand behind the proposal that was put forward and remain convinced that it provides a robust and workable solution to address the concerns raised by the ACM," a spokesperson said
The consumer goods conglomerate has gradually shed food assets over the last decade, divesting its tea and spreads businesses before spinning off its ice cream unit last year 
CEO Fernando Fernandez has accelerated efforts to build a company focused on beauty and wellbeing
In March, Unilever announced plans to hive off its food division and merge it with spice maker McCormick to create a $65 billion food giant
That deal, which would create one of the world's largest flavourings and food products companies, is also subject to competition scrutiny in the United Kingdom

(Reporting by Bart Meijer and Alexancer Marrow; Editing by Emelia Sithole-Matarise and Keith Weir)
((Bart.Meijer@thomsonreuters.com;))