Romania’s Competition Council has authorized French group Lactalis’ takeover of local dairy producers Covalact and Lactate Harghita but the French group needs to transfer for a period of time the license for the LaDorna butter to another company.

“Following an analysis, the Competition Council found that the transaction could lead to the consolidation of the Lactalis group position on the national butter production and retail market, resulting in fewer choices for consumers. In this situation, the transaction could have led to an increase in the price of butter,” the council said.

As such, Lactalis will transfer the La Dorna butter brand for a certain period of time to another industry player, independent from the group. The new owner of the brand would have to retail the product under a new name.

Lactalis will have to present the Competition Council information regarding the companies that wish to take over the butter brand and receive the council’s approval on the matter.

Lactalis acquired Covalact from American private investment fund SigmaBleyzer Southeast European Fund IV at the end of last year. Also in 2016, it took over Albalact, the biggest local dairy producer, from Romanian entrepreneur Raul Ciurtin and private equity fund RC2.

Covalact had a turnover of EUR 44.9 million and a net profit of 1.3 million, with 357 employees in 2015.

editor@romania-insider.com