The competition commissioner, Michal Cohen, announced today (Wednesday) to Strauss Group Ltd. and Mesek Weiler Ltd. that she opposes a merger between them, following an examination of the procedure that raised competitive concerns in the tofu and herbal industries.
Weiler is a private company engaged in the production of fresh tofu products as well as in the development, production and marketing of beverages and plant food products (plant based). Weiler sells tofu products under the “Weiler Farm” brand, which are distributed to chains by Strauss. In addition, Weiler manufactures tofu products for private labels of several entities.
Strauss is a public company engaged in the production, marketing, sale and distribution of a wide range of chilled and dried food products of various types including milk and its products, herbal drinks (milk substitutes), salads and dips, sweet and savory snacks, coffee and more. As mentioned, among other things, Strauss also distributes the “Weiler Farm” products.
As part of the merger, Strauss sought to acquire control of Weiler. Examination of the merger raised competitive concerns in the tofu and herbal industries.
The Authority’s investigation revealed, among other things, that Weiler is the largest and most significant tofu producer in Israel and that the possibility of the entry of additional competitors other than the parties to the proposed merger is low. Accordingly, if the merger is approved – there are fears of significant harm to competition in this industry, which could, among other things, lead to rising prices and reducing the range of options offered to consumers.
Concerns also arose that the merger would prevent Weiler from operating independently in the field of chilled herbal drinks – an area that Strauss is expected to enter in the near future and is currently controlled by Tnuva. The reasons for the decision will be published by the Commissioner later.