The American food giant Kraft was not allowed to buy the French Danone‘s biscuit, snack and cereal business branch unless it sold the Balaton szelet brand, according to a decision by the European Commission, reports Hírszerző. Selling the Balaton brand is important, because the merge of the two companies would endanger the competition in the biscuit and chocolate bar business branch in the markets concerned, including Hungary.
Balaton szelet is currently being distributed in Hungary by Danone. If the Balaton brand and and all other brands were concentrated in one hand, consumers would be disadvantaged, and prices would rise. This is why Kraft is being required to sell the brand and all rights and manfacturing tools pertaining to it.
In Spain, due to a similar situation, Kraft is being required to sell a biscuit factory and various Spanish biscuit brands.
