The previously flagged acquisition by poultry group LDC of Groupe Routhiau, a meat and plant-based business in France, has been cleared by competition authorities.
France’s anti-trust body, or Autorité de la Concurrence, said today (20 December) that “the transaction is not likely to harm competition”.
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Acquisition-hungry LDC revealed in January that it had entered “exclusive negotiations” to buy family-owned Groupe Routhiau, which is based in Saint-Fulgent, a commune in the Vendée department in the Pays de la Loire region in western France.
Employing 360 people, Groupe Routhiau produces fresh and frozen products, from cooked meats such as duck and chicken, to beef carpaccio, plant-based ready meals and French desserts.
The business supplies retail and the foodservice channel, as well as offering private label. Brands include Jean Routhiau, Tendance Créative, Les Trois d’Asie and Végétal manufactured at factories in Saint-Fulgent, Chanverrie and Chateaugiron.
In coming to its decision, the regulator said it found no evidence the deal would harm competition in the processed poultry and delicatessen segments where the two companies operate.
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By GlobalData“Following a careful examination, which led to consultations with the customers and competitors of LDC and the Routhiau group, the Autorité did not identify any anti-competitive risk on the main markets on which the companies compete,” it said in a statement.
It added in its assessment: “The Authority also examined the vertical effects of the transaction due to the presence of LDC in the upstream market for the collection and slaughter of poultry meat. In this case, the investigation made it possible to rule out any risk of LDC’s competitors being deprived of access to poultry.
“Finally, the Authority ruled out any risk of harm to competition through bundled offers or range discounts, both on the markets for delicatessen products and on the market for the marketing of prepared poultry products.”
Since the approach for Groupe Routhiau was announced, LDC, otherwise known as Lambert Dodard Chancereul, has struck other deals.
Most recently, in October, LDC took a majority stake in Germany-based European Convenience Food (ECF Group), a retail and foodservice supplier.
It also snapped up local salads and tabbouleh producer Pierre Martinet and then initiated the purchase of the Konspol brand in Poland, complete with a factory in Nowy Sącz in the south of the country.
Based in Sablé-sur-Sarthe, Paris-listed LDC generated a 6% increase in turnover to €6.2bn ($6.4bn) in the 2023-24 financial year. Poultry made up 72% with the rest coming from convenience foods.
EBITDA was relatively flat at €550.2m, compared to €547.4m a year earlier. Net profit climbed to €17m from €2.5m.
The company’s brands include Loué, Le Gaulois, Maître CoQ, Doux, Marie, Traditions d’Asie, Drosed and Nature et Respect.
