Danish Agro obtain control of DLA Agro and Hedegaard Agro
Today the Danish Competition Council has approved Danish Agros application of obtaining change of control in the procurement company DLA Agro and the agribusiness company Hedegaard Agro, which Danish Agro owns through the company Dan Agro Holding A/S.
Danish Agro, which has the majority in both DLA Agro and Hedegaard Agro, has so far had limited voting rights in both companies, which have meant that were not controlled by Danish Agro.
Group CEO in Danish Agro, Christian Junker, says the following about the approvals.
- We are very satisfied with the Competition Councils approvals. Today, Danish Agro is a big group with activities in many countries, and our future success depends among other things on our ability to utilize the competencies of our employees across our subsidiaries. Furthermore, it is important that our group can realize all possible synergies across our subsidiaries to optimize our operations and competitiveness. Today’s approvals will ensure that we can tie knowledge and resources from DLA Agro and Hedegaard Agro even closer to the group, benefitting both our company and the customers we do business with, says Christian Junker and continues:
- Our starting point for our wish of removing our limited voting rights and for our application to the Danish competition authorities has primarily been based on compliance considerations. We have had focus on removing the risk of violating the competition rules by doing business across our subsidiaries. Both DLA Agro and Hedegaard Agro continue as independent companies with own managements, he says.
In connection with the applications of change of control, the Danish Competition and Consumer Authority has identified some competition related concerns which have resulted in Danish Agro a.m.b.a having agreed to a number of undertakings to eliminate these concerns.
- As part of the approvals from the Danish Competition and Consumer Authority, Danish Agro has among other things agreed to sell of two of Hedegaards Agros feed factories and ensure access for all to do procurement in DLA Agro. It’s never fun to let some good groups assets go, but we see a great potential in the new group structure based on todays approvals, says Christian Junker.