Atria has been told it can proceed to buy a 70% stake in Kaivon Liha Kaunismaa Oy (Kaivon Liha) by the Finnish Competition and Consumer Authority (FCCA), which ruled the takeover would not hurt marketplace competition.
Atria’s interest in beef processor Kaivon Liha was first reported in June, with the business eager to expand its beef portfolio. The purchase price has not been disclosed and Atria said it plans to make this public next month, when the deal is finalised.
Kaivon Liha is primarily involved in producing beef products – mainly kebabs and hamburgers – which it supplies to fast-food and takeaway joints in Finland.
“Kaivon Liha has a strong market position in Finland as a manufacturer of high-quality hamburger and kebab products,” said Atria on 12 September. “The product range of Kaivon Liha complements Atria’s product range in beef products.”
The FCCA reviewed Atria’s planned acquisition of Kaivon Liha in late August and found there would be no damage to competition in Finland’s beef industry.
Atria expects the 70% stake of Kaivon Liha it has now been cleared to acquire will increase sales by approximately €40m ($44.8m) per annum.
None of the 50 staff employed by Kaivon Liha, which operates a factory in Turku on Finland’s southwest coast, will be impacted by the acquisition.