The Netherlands Authority for Consumers and Markets (ACM) has formally rejected Zwanenberg’s proposed acquisition of iconic food brand Unox. Regulator officials cited major anti-competitive risks, warning that the consolidation would lead to higher retail prices for staples such as smoked sausages, frankfurters, and shelf-stable soups.

According to the ACM’s extensive market investigation, allowing the deal to proceed would leave Zwanenberg with dominant market shares ranging between 60% and 85% in key grocery categories. By uniting Zwanenberg—a major producer of private-label supermarket goods—with Unox’s premium brand presence, the combined entity would become virtually the sole supplier in several categories.

This concentration of market power would significantly reduce leverage for Dutch supermarkets during price negotiations. With few viable alternative suppliers and high capital requirements acting as barriers to new market entrants, regulators concluded that the deal would inevitably push store prices higher for consumers.

ACM Chairman Martijn Snoep emphasized the importance of safeguarding consumer purchasing power, noting that preventing price hikes is critical at a time when food inflation remains a key public concern. Several major supermarket chains voiced similar fears during the regulator’s investigation, expressing concern over the loss of competing suppliers.

To address these antitrust concerns, Zwanenberg offered to divest partial production capacity to a third-party buyer. However, the ACM deemed these proposals inadequate. Regulators noted that the proposed remedies lacked concrete implementation details, failed to transfer sufficient production capacity for cooked sausages, and maintained a two-year operational dependency between Zwanenberg and the prospective buyer.

Given the lack of guarantee that healthy market competition would be preserved, the ACM officially withheld approval for the transaction. Participating companies retain the right to appeal the ruling. The decision aligns with the regulator’s broader commitment to maintaining functional competition and fair grocery pricing across Dutch retail markets.