Competition Authority fines Strauss Group NIS 111m

• Published date: 30 October 2024
• Author: Shira Sapir
• Publication title: Globes (Rishon LeZion, Israel)

In addition, three senior Strauss Group managers have been fined NIS 600,000 each: former Strauss Group CEO Giora Bardea; former Strauss Israel CEO Eyal Dror; and former Strauss Israel CFO Gur Zamir. Fines have also been imposed on three company officers of Wyler Farm, of between NIS 119,000 and NIS 154,000

The Competition Authority found that Strauss Group and Wyler Farm carried out a merger without reporting it to the Competition Authority director-general and without her consent. Under the Economic Competition Law, companies wishing to merge are required to apply to the director-general of the Competition Authority and to obtain her consent before proceeding with the merger. The law forbids carrying out a merger, full or partial, before the director-general's decision.

The affair began in July 2021, when Strauss Group announced its intention of merging with Wyler Farm. For Strauss, milk alternatives are a strategic segment, and it is working to expand its activity in it considerably, in cooperation with international food company Danone, under the Alpro brand.

The Competition Authority did not approve the deal between Strauss Group and Wyler Farm, because of the fear of harm to competition, and in the course of its examination it claimed that Strauss group had begun the merger process before receiving approval from the...