Italy’s competition regulator has conditionally cleared the merger of gelato supplier Sammontana with frozen baked goods business Forno d’Asolo. The Autorità Garante della Concorrenza e del Mercato (AGCM) had previously blocked the merger in May but has now agreed to let the transaction proceed with certain conditions.
The AGCM has stipulated that an operation in the frozen baked goods segment must be sold as part of the merger. This operation primarily refers to Forno d’Asolo. Additionally, the AGCM has recommended that Sammontana exit gelato supply contracts with Froneri, an ice-cream business partially owned by Nestlé.
The initial merger agreement was announced in February when the Bagnoli family, founders of Sammontana, partnered with investment management group Investindustrial to acquire Forno d’Asolo from private-equity firm BC Partners. The family, Investindustrial, and the management team would collectively own 100% of the new group.
The regulatory concerns surrounding the merger have now been addressed, allowing the deal to move forward. The AGCM has outlined specific conditions that the merging companies must adhere to, including divesting certain assets, transferring concession contracts, and ensuring fair competition in specific regions of Italy.
InvestIndustrial and Forno d’Asolo have not yet provided a response to the AGCM’s directives. The combined group is expected to generate around €1bn in revenue and offer a variety of frozen pastries, desserts, and gelato products to a wide range of customers. Sammontana, with three production plants in Italy and over 1,000 employees, is well-positioned to benefit from this merger.
The investigation conducted by the AGCM revealed the existence of a national market for frozen bakery breakfast products, separate from fresh products and other bakery items. The merger was seen as potentially anti-competitive, prompting the AGCM to impose conditions to ensure fair competition and pricing in the market.
Overall, the merger between Sammontana and Forno d’Asolo represents a significant development in the food and beverage industry. By meeting the AGCM’s requirements, the merging companies can create a more robust and competitive business in the market. This merger will likely have a lasting impact on the food and drink business landscape.
