E.C. clears Nestle's purchase of Gerber

by Eric Schroeder
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ZURICH, SWITZERLAND — The European Commission has cleared the proposed acquisition of Gerber by Nestle S.A., concluding the operation "would not significantly impede effective competition in the European Economic Area (E.E.A.) or any substantial part of it."

Activities of the two companies overlap in several segments of the baby food market in Poland, Cyprus, Iceland and Portugal.

In Poland, the E.C. said the proposed merger would not impede competition, given the limited overlap and the competitive pressure exerted by existing competitors and potential entrants.

In Cyprus, Iceland and Portugal, the E.C. said market entry is "relatively easy," as all manufacturers sell via distributors and several new entrants have been able to grow market share quickly in recent years.

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