A team from the Leeds office of Cobbetts LLP has just secured competition clearance from the Office of Fair Trading for its client Dr. Oetker, following completion of its acquisition in January 2009 of the EU "Chicago Town" and "Freschetta" pizza business from US branded frozen pizza manufacturer, Schwan's.  The OFT's decision means that Dr. Oetker may now merge its own UK frozen pizza operations with its newly acquired business, including the production plant at Leyland, having previously been required to hold the businesses separate, pending the conclusion of the OFT's enquiry. 
 
Cobbetts' head of competition, Jonathan Branton, who led the Cobbetts team on the OFT investigation said: "This is a thoroughly sensible decision from the OFT and to be applauded.  As a consumer, one would think that frozen pizzas like Chicago Town compete with supermarket own label brands and, though not formally determined in this case, many would say that frozen pizzas also compete with chilled or "fresh" pizza products sold in supermarkets. Either way, the OFT has confirmed that these segments exercise clear competitive constraints upon one another, particularly in a market where the very strong purchasing power of multiples is acknowledged."
 
The decision underlines how important it is to be prepared on competition issues in UK acquisition situations. Prior to making the acquisition, the likely effects of the merger were evaluated, including a detailed economic analysis undertaken by the European School of Management and Technology.
 
Doris Abeln, MD finance and administration at  Dr. Oetker UK Ltd said: "We have been working with Cobbetts and the OFT investigation team over the past two months and are delighted with this positive outcome. The future looks very exciting. Dr. Oetker UK is absolutely focused on delivering fantastic products for its consumers and driving growth in the frozen pizza category.

"Our combined portfolio now includes Chicago Town Deep Dish, the UK's favourite pizza brand for the past 15 years, Ristorante, which is enjoying significant growth year on year, and the innovative Chicago Town Takeaway range, which has driven category growth by diverting spend into supermarkets from takeaways and restaurants. In addition, Dr. Oetker UK is also committed to delivering innovative new products.
 
"We have a tremendous talent pool within the combined business with a team that is committed to delivering first rate consumer experiences.  The confirmation of this approval brings security and with it, a renewed energy to the workforce of over 300 people based at the Leyland manufacturing plant. We are certain that our acquisition of the Schwan’s business will benefit all the brands involved and the pizza category as a whole."
 
Commercial partner, Mark Green, who led Cobbetts’ multi-disciplinary team on the original acquisition of the Schwan pizza business, concluded: "Having now successfully completed all aspects of the UK and continental acquisitions, the team at Cobbetts wish the Dr. Oetker group every success in integrating its new business, so as to continue to develop its strong brand presence, both here in the UK and abroad."

Picture caption: Jonathan Branton, Cobbetts