EU regulators approved the merger of Netherlands-based dairy food product cooperatives Campina and Friesland Foods on condition they sell certain cheese and dairy drink divisions.
The European Commission said the initial merger would have resulted in serious competition concerns in Germany, the Netherlands and Belgium for various dairy products, including yoghurt drinks, cheeses and custards.
To meet EU concerns, the two cooperatives, which are owned by member dairy farmers, said they would sell off several dairy and cheese production plans as well as several brands including Yogho Yogho and Choco Choco brands.
The divested businesses account for around four percent of the new merged company’s total revenue, which is expected to total around euro9.1 billion ($12.5 billion).
The two cooperatives announced their merger in 2007.