Decision Nº M/03/026 from Competition and Consumer Protection Commission, 2003-08-19

CourtCompetition and Consumer Protection Commission (Ire)
Decision Date19 August 2003
Date19 August 2003
Submitted Date01 August 2003
PartiesAbbott,ZonePerfect
StatusCleared (Phase 1)
Decision NumberM/03/026
Determination of the Competition Authority
Determination No. M/03/026 of the Competition Authority, dated 19th August
Notification No. M/03/026 – Acquisition by Abbott Laboratories of ZonePerfect
Nutrition Company, Inc.
Introduction
1. On 1st August the Competition Authority, in accordance with Section 18 (1) of
the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a
proposal whereby Abbott Laboratories (“Abbott”) would acquire the entire issued
share capital of ZonePerfect Nutrition Company, Inc (“ZonePerfect”).
The Parties
2. Abbott is a US-registered multinational corporation, which is engaged in the
discovery, development, manufacture and sale of a broad and diversified line of
health care products and services. Abbott has established a physical presence in
Ireland and its sales in Ireland comprise pharmaceutical products, medical
hospital products, medical diagnostics and medical nutritionals products.
3. ZonePerfect which is also based in the US, manufactures health food products
which are targeted at consumers seeking healthy nutrition. These health food
products which include ready meals, snack bars, supplements, baking mixes and
drinks are manufactured according to a certain ratio of carbohydrate, protein and
fat, as advocated by the diet known as the Zone. The majority of ZonePerfect’s
sales revenue is derived from the sale of snack bars. Zoneperfect does not have a
physical presence in Ireland and has minimal sales in Ireland which are achieved
entirely via the internet.
Analysis
4. There is no overlap between the parties’ activities in Ireland. Both parties
produce snack bars; however Abbott does not market its snack bar in Ireland. In
any event, ZonePerfect does not have a strong presence in the State, with minimal
sales achieved in Ireland via internet. Therefore the proposed acquisition does
not give rise to any competition concerns.
Determination
The Competition Authority, in accordance with Section 21(2) of the Competition Act,
2002, has determined that, in its opinion, the result of the proposed acquisition will
not be to substantially lessen competition in markets for goods and services in the
State and, accordingly, that the acquisition may be put into effect.
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