Bewi required to sell factories before acquiring Jackon

The Norwegian Competition Authority approves Bewi’s acquisition of Jackon on the condition that they sell Jackon’s fish box factories in Alta and Gratangen. The factories must be sold to an independent and suitable buyer before the acquisition can be completed.

Bewi and Jackon produce EPS fish boxes in several factories along the Norwegian coastline. The boxes are sold to the fish farming industry and other parties in the fishing industry. Because these markets face high transportations costs, customers wish to buy EPS boxes from factories in their local markets.

– The acquisition involves two large and close competitors in the ESP fish box industry in Troms and Finnmark county. We have been concerned that reduced competition will lead to increased costs for customers in two local markets, says Deputy Director of Department for Construction, Industry, and Energy Marita Mæland Skjæveland.

Proposed remedies

The Competition Authority shall prohibit acquisitions and mergers that will lead to a significant impediment to effective competition, unless the parties propose remedies that remove the competition concerns identified. In March 2022, the Competition Authority informed the parties that the acquisition could be prohibited. Following this notification, the parties chose to propose remedies.

The remedies proposed involve a commitment to selling Jackon’s fish box factory in Alta, as well as Jackon’s stocks in the fish box factory Kasseriet in Gratangen. These will be sold to one or several suitable buyers. The Competition Authority can also approve the sale of one or several equivalent factories if they are found to remove the competition concerns as effectively as the sale of the abovementioned two factories.

– Bewi and Jackon are close competitors in the market for EPS fish boxes in Troms and Finnmark. Now that the parties have committed to sell factories to a suitable buyer that can compete effectively, the Competition Authority’s considers that effective competition will be maintained in this market, states Project Manager Rebekka Søvik.