The Dutch competition authority has decided to further probe Zwanenberg's proposed takeover of Unox from Unilever after an initial investigation into the deal.

In December, Unilever received a “binding offer” from the Dutch meat, snacks and soups producer to acquire the Unox and Zwan food brands.

In a statement, the Netherlands Authority for Consumers and Markets (ACM) said that it saw "a risk" that Zwanenberg would "gain too strong a negotiating position towards supermarkets with the acquisition of Unox".

It added that could lead to consumers having to pay higher prices for products like smoked sausages.

Unox and Zwanenberg both sell smoked sausages and prepared soups to supermarkets, among other goods.

Zwanenberg specialises in private-label manufacturing while Unilever had marketed processed meats and shelf-stable soups under the Unox brand name. A large part of its portfolio is already produced by Zwanenberg.

Commenting on its decision, the ACM said Unox "has an important position” in the processed meat and long-shelf-life soup categories.

“It is important for supermarkets to be able to offer Unox products, because a lot of consumers are brand loyal. If supermarkets don’t have these products, they may go to another supermarket. Unox's main competitors are probably supermarkets' own brands, a segment in which Zwanenberg is a major player," the ACM said.

The ACM said it would investigate the risk of price increases in its follow-up probe.

"If Zwanenberg and Unox want to continue with the acquisition plan, they can submit a permit application to the ACM," it added.

The financial terms of the deal were undisclosed when it was announced in December.

At the time, Zwanenberg said the move was part of its strategy to “focus” on producing and distributing soups, meat products, plant-based alternatives, sauces, and ready meals.

Unox and Zwan have been part of Unilever's line-up for nearly a century.

Zwanenberg, which employs 1,800 people, reported sales of €600m ($624.8m) in 2023. The Dutch company exports private-label canned meat goods to more than 100 countries.

"Antitrust probe of Zwanenberg’s acquisition of Unox to continue" was originally created and published by Just Food, a GlobalData owned brand.

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