BayWa AG / WLZ AG merger cleared subject to strict obligations

The Bundeskartellamt has cleared the planned merger of the central agricultural cooperatives BayWa AG in Munich and WLZ AG in Stuttgart only subject to strict obligations.

The President of the Bundeskartellamt, Ulf Böge, stated: “In order to have the merger cleared the companies involved have committed themselves to sell a volume of business worth approx. € 65 million, i.e. almost half of WLZ’s turnover from trade in agricultural products to a single third company.  This will significantly dismantle the positions held by BayWa and WLZ in the markets concerned and initiate effective competition by a further company.”

According to Böge clearing the merger without obligations would have strengthened WLZ’s existing dominant position in agricultural markets in Baden-Württemberg, especially with regard to the purchase of grain and oil seeds and retailing of seeds, fertilizers and pesticides. This would have caused a corresponding strengthening effect on BayWa’s position in agricultural markets in Bavaria.

The sale involves business units and divisions at 30-35 sites, which can be continued as independent economic units and which are located in the regional markets along the border between Bavaria and Baden-Württemberg. The acquirer and the acquisition of these sites require the approval of the Bundeskartellamt.

Where sites cannot be sold within the specified time limit a trustee appointed and authorized by one of the companies involved will effect the sale.