Apax's buy of Tnuva gets antitrust okay

Apax Partners Worldwide LLP received regulatory approval to buy Tnuva Marketing Cooperative under conditions limiting Tnuva's milk-drying business.

By ALISA ODENHEIMER, BLOOOMBERG
July 10, 2007 08:06

Apax Partners Worldwide LLP received regulatory approval to buy Tnuva Marketing Cooperative under conditions limiting Tnuva's milk-drying business. Tnuva will be viewed as a monopoly in the area of milk drying and powdered milk distribution, the Antitrust Authority said Monday. It will be obliged to provide large competing dairies such as publicly traded Strauss Group Ltd. with milk drying services and to sell powdered milk to smaller dairies that do not purchase milk directly from farmers. "The main concern that led to the imposition of conditions is that Tnuva is the only one in Israel that has milk-drying facilities to produce powdered milk," the statement said. "These facilities have great importance for the milk sector, since they are the main regulating device for dealing with gaps between supply and demand for milk." Apax formed a joint venture with Mivtach Shamir Holdings Ltd., a Tel Aviv-based investment company, to buy control of Tnuva in a transaction that values the cooperative at $1.03 billion. (Bloomberg)


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