EU Approves Slaughterhouse Mergers

BRUSSELS - Sep 13/04 - SNS -- The European Commission approved the sale of Polish slaughterhouse Sokolów to Danish Crown and Finnish HK Ruokatalo because the purchase does not "raise any competition concerns given that the companies are presently active in essentially different countries."

On 9 August 2004 the Commission received a notification whereby Danish Crown A.m.b.a. and HK Ruokatalo Oyj will acquire joint control of the slaughterhouse company Sokolów.

Danish Crown is a Danish co-operative slaughterhouse with 19,799 members which is active not only in the slaughtering of pigs and cattle but also in meat processing and meat trading. It has activities worldwide. HK Ruokatalo is a publicly-listed company controlled by LSO Osuuskunta, also a co-operative with approximately 7,000 members. Like Danish Crown, it is a vertically integrated company from the slaughtering of pigs, cattle and poultry to meat trading and meat processing.

Sokolów, the target of the proposed transaction, is active in the slaughtering of pigs and cattle and in the processing of pig meat, beef and poultry. Sokolów produces a wide range of meat products from its production facilities in Poland, which is also its main market.

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