May 10, 2006

 

Government blocks merger between top meat processors in Norway

 

 

A planned merger between Gilde and Prior, two of Norway's largest meat and food processing companies, could be scuttled by the Norwegian Competition Board over concerns that it would create unfair competition in the market.

 

If approved, the joint Gilde Prior company would have been the market leaders in the production of meat, poultry and eggs, with 7,000 workers and processing plants spread over 41 districts in Norway.

 

The two companies have said the purpose of the merger was to enable it to compete internationally.

 

Gilde has recently been at the center of concerns over an outbreak of E coli, which caused the death of one child and hospitalization of several others.

 

The company has assured the public of its food safety and called upon a quality standards agency to inspect production systems in the company.

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