The European Commission has launched an in-depth investigation into a proposal by Douwe Egberts Master Blenders (DEMB) and Mondelēz International to merge their coffee businesses.
The Commission will investigate whether the proposed transaction is in line with the EU Merger Regulation.
The proposed merger is expected to reduce competition for various coffee formats in Austria, France, Denmark and Latvia and for single-serve systems in multiple Member States.
The Commission claims that the merger would lead to higher prices for customers of machines and consumables.
When completed, the new joint venture Jacobs Douwe Egberts will bring together Mondelez's grocery coffee brands such as Carte Noire and Gevalia and DEMB's' L'Or, Pilao and Senseo brands.
The transaction was notified to the Commission on 27 October 2014 and the investigation is expected to be completed by May 2015.
Image: The proposed transaction will merge DEMB and Mondelez's coffee businesses. Photo: courtesy of Jeroen van Oostrom / FreeDigitalPhotos.net.
