Competition Bureau will not oppose Kraft sale of natural cheese business to Parmalat

News release

May 30, 2019 – OTTAWA, ON – Competition Bureau

The Competition Bureau has concluded its review of the proposed acquisition of the assets associated with the natural cheese business of Kraft Heinz Canada ULC by Parmalat S.p.A. and has issued a No Action Letter (NAL) to the merging parties. 

The NAL confirms that the Bureau will not, at this time, challenge the proposed acquisition.

In conducting its review, the Bureau gathered evidence and obtained information through interviews with key market participants, including grocery retailers, food service companies, regulators, industry associations, and cheese processors.

In addition, for the first time in a merger review since the 2009 amendments to the Competition Act, the Bureau obtained a federal court order requiring executives of the merging parties to be interviewed under oath by Bureau investigators.

The Bureau will publish a position statement on its review in the coming days, which will include greater detail regarding the Bureau’s analysis.

Quick facts

  • On November 6, 2018, Parmalat announced that it had reached an agreement to acquire the assets associated with the natural cheese division of Kraft.

  • Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.

  • Kraft’s natural cheese business produces multiple formats and flavours of natural cheese, including sales under the Cracker Barrel, Kraft, P’tit Quebec, and aMOOZa! brands.  Parmalat also sells multiple formats and flavours of natural cheese in Canada, including sales under the Black Diamond brand.

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