Black, analyst at Shore Capital, told FoodNavigator the UK’s OFT was looking into such deals more frequently, where the parties involved in a merger or acquisition were operating in the same markets.
“It’s becoming increasingly par for the course these days,” he said, but he added: “It will act as a bit of an uneasy break in proceedings, but I would be surprised if they didn’t permit the deal to go through.”
Announcing the move, the OFT said in a statement that is was “considering whether this acquisition has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the UK for goods or services”.
Mizkan’s UK brands
Andrew Cartwright, general manager for Mizkan Europe told FoodNavigator that Mizkan’s UK brands were Mizkan rice vinegars; sushi seasonings and Japanese dressings, and Manor malt, distilled, cider, pickling and red and white wine vinegars. In addition, the company has a substantial presence in the UK own label market.
Premier Foods announced in June the sale of its vinegar and sour pickles business, which includes its Sarson’s, Haywards and Dufrais brands to Mizkan Group, which has its headquarters in Japan. The proposed cash consideration of the sale was £41m (€52.52m).
The deal includes Premier Foods’ own label vinegar and pickles business, its Middleton production site and its pickled beetroot and piccalilli lines at its Bury St Edmunds factory.
A spokesman for Premier Foods said the company had no statement to make about the OFT’s announcement.
Mizkan’s last UK acquisition was the purchase of Manor Vinegar Brewery from Greencore in 2002.