European Commission Clears Acquisition of Pret A Manger by JAB
The European Commission has approved, under the EU Merger Regulation, the acquisition of PAM Group (Pret A Manger) of the UK, by JAB Holdings, controlled by JAB Holding Company of Luxembourg. Pret A Manger is a food and drink retailer.
JAB holds interests in tea and coffee brands (including Jacobs, Douwe Egberts and Tassimo) and coffee and doughnut retailers (including Krispy Kreme Doughnuts, Espresso House and Balzac Coffee). The Commission concluded that the proposed acquisition would raise no competition concerns in the UK, Denmark and the Netherlands, given the companies’ limited overlap in food and drink retail, the fact that they are not close competitors, and the presence of a large number of competitors.
The potential vertical relation between JAB’s wholesale and Pret A Manger’s retail coffee sales does not raise competition concerns either, due to the minimal presence of Pret A Manger in countries where JAB is strong. The transaction was examined under the normal merger review procedure.
