The Georgian Competition and Consumer Agency (GCCA) has approved a planned concentration in the infant nutrition market, involving JSC "Gepha" acquiring 100% of the shares of LLC "Fine Tree International".
To evaluate the competitive impact of the transaction, the GCCA analyzed import levels across four relevant markets in 2024: Infant Formula Substitutes (0–12 months): 11 companies operated, with a market volume of 1,837,641 units valued at GEL 28,972,931; Follow-on Formula (1–3 years): 8 companies were active, with a market volume of 407,870 units valued at GEL 5,906,678; Milk and Non-Milk-Based Baby Cereals: 11 companies participated, with a market volume of 2,902,422 units valued at GEL 12,206,886; Ready-Made Baby Food (Purees, Yogurts, Puddings, etc.): 12 economic agents operated, with a market volume of 3,347,256 units valued at GEL 7,023,803.
The GCCA’s assessment determined that all four markets are moderately concentrated. Despite the limited number of undertakings at the import level, competitive dynamics remain robust. The post-concentration change in the concentration index falls within legal thresholds, indicating that the transaction will not significantly harm competition. Consequently, the GCCA concluded that the proposed concentration is compatible with a competitive market environment.
FYI: Concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined.
In 2025, the Georgian Competition and Consumer Agency has approved 10 concentrations.
