ALDI can acquire Altmühltaler Mineralbrunnen – Schwarz Group can take over Erfurter Teigwaren

The Bundeskartellamt has cleared the acquisition by ALDI Vertical Value Management II GmbH of MSGB Gmbh, Altmühltaler Mineralbrunnen GmbH and Vitaqua GmbH. On 4 October the Bundeskartellamt had already cleared the acquisition of Erfurter Teigwaren GmbH by the Schwarz Group (inter alia Lidl and Kaufland).

Andreas Mundt, President of the Bundeskartellamt: "When large retailers acquire food producers, competition watchdogs always look into whether market foreclosure to the detriment of other producers or retailers is imminent. Both Altmühltaler and Erfurter Teigwaren GmbH are important manufacturers of private label products in their respective segments in Germany. However, we have ultimately determined for both that there will be sufficient alternatives in the market after the acquisitions. Other producers of mineral water or pasta can turn to other retailers while other retailers have other producers of private label products to choose from."

Altmühltaler and Vitaqua produce and sell mineral water and non-alcoholic beverages as well as packaging materials at their sites in Treuchtlingen and Breuna. They are among Germany's largest producers of private label mineral water beverages.

Under competition aspects the Bundeskartellamt considers ALDI Süd and ALDI Nord to be a de facto coordinated group (Gleichordnungskonzern under German law) and an economic entity. The acquisition will not lead to an addition of market shares, as neither ALDI Nord nor ALDI Süd have been active in the production of mineral water beverages so far.

With a turnover of approximately 70 million euros, Erfurter Teigwaren GmbH is Germany's largest producer of private label pasta. Besides its retailing activities, the Schwarz Group is also active in various areas of food and beverage production; however, it has not produced pasta so far.

The Bundeskartellamt will continue to monitor the effects on competition of this vertical integration of producers in the food retail sector.