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Südzucker-ED&F MAN sugar merger cleared, but must divest Italian refinery

 |  May 16, 2012

The European Commission has conditionally cleared Südzucker’s proposed acquisition of control over ED&F MAN. To go ahead with the merger, ED&F MAN must divest its interests in the Brindisi refinery, its largest and most modern production facility in Italy. The refinery is the second-largest raw cane sugar refinery in Europe.

The approval follows a Phase II review of the deal. The Commission was concerned with the concentration of the European sugar markets: Südzucker is Europe’s largest sugar producer, and ED&F MAN is the second-largest sugar trader in the world, with additional activities in sugar production. Furthermore, Europe is currently experiencing scarcity and high prices of sugar, especially raw cane sugar. The proposed divestiture is to ensure competition for sugar in Italy, where the merged entity would have had a 50 percent market share. Südzucker and ED&F MAN also committed to transfer to the Brindisi refinery purchaser long-term contracts for raw cane sugar input.

Full content: EC Press Release


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