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EU: Regulators mull over chocolate merger between Cargill and ADM

By  |  February 24, 2015

The European Commission said on Monday it had opened an in-depth investigation into Cargill Inc’s planned acquisition of Archer Daniels Midland Co’s chocolate business, citing concerns the deal could lead to higher prices.

The EU executive said it had until July 8 to investigate Cargill’s planned $440 million acquisition, designed to expand the commodity trader’s production capacity in North America.

The review could delay the closing of the deal, if it is ultimately approved. ADM previously said it expected the deal to close by July 1, but is “now targeting closing in mid-2015,” spokeswoman Jackie Anderson said.

The Commission said its preliminary investigation had shown potential competition concerns in the supply of industrial chocolate to customers in Germany and Britain, where Cargill, ADM and Barry Callebaut AG were the main suppliers to customers.

 

Full Content: The Wall Street Journal

 

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