Danish Competition Authority Revokes Merger Approval For The First Time Ever

On 25 January 2010, at 9.38 am, the Danish Competition Authority approved Danish Agro a.m.b.a's ("DA") takeover of S.A.B. A.m.b.A. Landbrugets Andel ("SAB").

It was, e.g., taken into account in the merger assessment that potential competitors constituted a sufficient counterbalance, including Aarhusegnens Andel A.m.b.A. ("AAA"), to offset the competition concerns about the merger.

On 25 January 2010, at 11.06 am, the Danish Competition Authority received an email notifying a rescue plan for the takeover of AAA. The material showed that a framework agreement had been entered into on 13 January 2010 with a consortium consisting of DLG and DA for their joint takeover of AAA. The material further revealed that it was contemplated that DLG and DA were to split the company between them, that DA was to take over the most essential activities within the feeding stuff area and that AAA was facing bankruptcy.

The lawyer representing DA in connection with the takeover of SAB was also involved in DLG and DA's takeover of AAA.

The Danish Competition Authority had not been informed of these circumstances by the parties or the parties' lawyers...