Decision Nº M/03/045 from Competition and Consumer Protection Commission, 2004-01-23

• Jurisdiction: Ireland
• Parties: Northern Foods Ireland,Maiden Acquisition Company Ltd
• Date: 23 January 2004
• Decision Date: 23 January 2004
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/03/045

Determination of the Competition Authority

Determination No. M/03/045 of the Competition Authority, dated 23rd of January

2004, under Section 21 of the Competition Act, 2002

Notification No. M/03/045 – Acquisition by Barry’s Tea and Bank of Scotland

(Ireland) Limited of Northern Foods (Ireland) Limited

Introduction

1. On 24th of December 2003 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 Maiden Acquisition Company Limited

(“Maiden”), jointly owned by Barry’s Tea and Bank of Scotland (Ireland)

Limited (“BOSI”) and incorporated for the purposes of this transaction, would

acquire Northern Foods (Ireland) Limited (“NFIL”).

The Parties

2. Maiden, a company incorporated in Ireland, has been set up by Barry’s Tea and

BOSI to acquire the shares of NFIL. Anglo Irish Bank Corporation Plc will

provide debt finance for the proposed transaction.

3. Barry’s Tea is a wholly owned subsidiary of Barry’s (Cork) Limited. The Barry

family owns Barry’s Tea. Barry’s Tea is active in the blending, packaging and

wholesaling of tea in Ireland. Barry’s Tea supplies tea for sale mainly in the retail

sector.

4. BOSI is active in the financial sector. BOSI is involved in commercial lending,

working capital, business current accounts, commercial asset finance, motor

finance, property finance, and treasury and investments. ICC Venture Capital, a

wholly owned subsidiary of BOSI, is the unit that is entering into the investment

in Maiden. BOSI is not active in any of the sectors in which Barry’s Tea and

NFIL are active.

5. Northern Foods Plc, a company listed in the UK, owns NFIL. NFIL is active in

the manufacture, processing and distribution of food and beverages for resale by

the retail sector in Ireland and also supplies certain beverages to the

hotel/restaurant sector. NFIL carry out these business activities through the

following companies:

(a) Batchelors Limited which is active in canned, peas, canned beans, biscuits, 1

litre/500 ml juice, ready-to-drink juice, canned corn, Mexican ethnic food and

coffee. NFIL submitted that it has distribution arrangements with Lavazza and

Douwe Egberts to supply their brands of coffee. Both brands are supplied to

hotels, bars and restaurants. It sells some quantity of the Lavazza brand to the

retail sector and estimates that its market share of the retail coffee market is

approximately [ ]. It also supplies a minimal amount of the Douwe Egberts tea

label, an activity valued at [ ], to hotels, bars and restaurants. NFIL does not

supply this tea label to the retail sector.

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