Nortura allowed to acquire Steinsland subject to conditions

The Norwegian Competition Authority has allowed Nortura to acquire the hatchery company Steinsland & Co AS subject to conditions. Nortura have committed to a series of proposed remedies, which aim to safeguard effective competition in the egg manufacturing value chain.

On 2 February 2022, Nortura notified its proposed acquisition of two thirds of the hatchery company Steinsland & Co AS to the Competition Authority. Today, The Norwegian Competition Authority has notified the parties that the merger has been approved, subject to certain conditions.

The Competition Authority has concluded that the merger would lead to a significant impediment to effective competition in the market for breeding and sale of day-old laying hens, as well as in the market for sale of eggs to grocery and catering businesses. Following the Authority’s concerns, Nortura has proposed a series of remedies. The Competition Authority finds that the remedies remove the competition concerns that have been identified in the markets concerned.

As part of the proposed remedies, Nortura has committed to supplying day-old laying chickens or pullets on non-discriminatory terms to egg manufacturers that supply competing egg packeries. The non-discriminatory terms include prices, volumes, and other supply conditions. Nortura further commits to not discriminate consumer egg manufacturers based on which supplier or chicken breed is chosen for purchasing laying hens. The remedies have a duration of 10 years.

It is the opinion of the Competition Authority that the remedies to which Nortura has committed will safeguard effective competition in the egg manufacturing market, says Beate Milford Berrefjord, Department Director of food, trade and health.

Timeline of the case

2 February 2022: Notification of merger between Nortura SA and Steinsland AS
9 March 2022: Statement of Objections informing the parties that the acquisition could be blocked
1 April 2022: Remedies proposed
8 April 2022: Revised remedies proposed
22 April 2022: Revised remedies proposed
23 May 2022: Final remedies proposed
9 June 2022: Decision

Department Director of food, trade and health Beate Milford Berrefjord