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Chile/Mexico: FNE bans Bimbo from Nutrabien purchase

By  |  May 21, 2018

The National Economic Prosecutor’s Office (FNE) of Chile reported its decision to block the acquisition of Nutrabien, part of the CCU food group, by a unit of Mexican food giant Bimbo, on the grounds that the operation would affect competition.

The regulator concluded that the merging of Alimentos Nutrabien with Ideal, a subsidiary of Bimbo, would have reduced the competitive intensity in the relevant markets and that this would not have been offset by efficiencies and mitigation measures proposed by the companies.

The case marks the first time that the Chilean competition authority prohibits a merger between companies since the approval of the country’s new merger control system, in June of last year. Despite the FNE’s ruling, the companies can appeal before the Court of Defense of Free Competition (TDLC).

Full Content: La Prensa

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