The merger between Italian ice-cream maker Sammontana and frozen baked goods company Forno d’Asolo has been blocked by Italy’s competition authority, Autorità Garante della Concorrenza e del Mercato (AGCM). The AGCM is concerned that the deal could restrict competition in the marketplace and has halted the transaction pending further investigation.
Reported in the Italian media, the AGCM issued a circular on May 6 ordering the immediate suspension of the merger. The parties involved were given five days to respond to the regulator’s concerns. The merger was originally announced in February by the Bagnoli family, owners of Sammontana, and the investment group InvestIndustrial.
InvestIndustrial planned to combine Sammontana with the FdA Group, buying Forno d’Asolo from BC Partners. The new group would be owned 100% by the Bagnoli family, InvestIndustrial, and the management team. The AGCM raised concerns that the merger would significantly impact competition in the market for frozen breakfast bakery products due to the combined market share and network reach of Sammontana and FdA.
Additionally, the AGCM feared that the merger would create a dominant market share in frozen baked breakfast goods, posing a threat to competition. InvestIndustrial, the initial issuer of the merger agreement, has not responded to requests for comment. Neither has the AGCM.
In a separate statement, BC Partners highlighted the successful growth of Forno d’Asolo since its acquisition in 2018. The business expanded into the US, Germany, and France, and also acquired Milan-based patisserie maker Bindi. Forno d’Asolo reported sales of around €500m and EBITDA of over €85m in 2023.
InvestIndustrial projected that the combined group would generate €1bn in revenues, operating production facilities in Italy, the US, and France. They would supply frozen pastries, desserts, and gelato products to various establishments. Sammontana, with three production plants in Italy and over 1,000 employees, has a wide distribution network.
Despite the potential benefits of the merger, the AGCM remains concerned about its impact on competition in the frozen breakfast bakery and ice cream markets. The outcome of the investigation will determine the future of the Sammontana-Forno d’Asolo merger.